DIFFERENCE BETWEEN GUARANTOR AND SURETY

DIFFERENCE BETWEEN GUARANTOR AND SURETY

In Nigerian businesses, the wrong legal role can either land you in debt or leave you too legally exposed. That is why understanding the difference between a guarantor and a surety is financial intelligence.

A surety is directly and equally liable from day one. Once the debtor defaults, the creditor can come straight for you. No need to chase the borrower first.

A guarantor, on the other hand, only steps in after efforts to recover from the debtor have failed. Suretyship exposes you immediately while guarantorship gives you breathing space until efforts made to recover the money from the debtor have failed.

If you are the one giving credit, leasing property or being owed, the decision between requesting a surety or a guarantor can shape your outcome.

A surety offers stronger protection as you can pursue either the debtor or the surety the moment things go wrong.

But if you only have a guarantor, the law expects you to first exhaust remedies against the debtor before touching the guarantor.

So the smart move is to choose based on the level of risk you are willing to bear or transfer.

Whether you are signing or demanding, the consequences are real. The wrong choice can secure your transaction or ruin it.

As Sir Francis Bacon (English philosopher) said, knowledge is power.

When transacting, choose right.

Guarantor or surety? Pick the one that works best for you.

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APEX CHAMBERS, Law Firm of Property/Real Estate and Business/Corporate /Commercial Lawyers, Attorneys, Barristers, Solicitors Advocates, Legal Practitioners rendering legal services, Legal Consultants and Notary Public in Port Harcourt, Rivers State, Nigeria

Phone: +234(0)7030868694 (Calls & Whatsapp)
Email: info@apexchambersglobal.com
Website: www.apexchambersglobal.com