Guarantor

If you borrow money and suddenly find you can't pay, the lender may find they have a bad debt on his hands. And so, basically if a lender thinks you might not be able to pay back a loan being applied for, they can ask for a guarantor - a third party who'll pay your debts if you can't . So a guarantor is a third party who stands liable to cover any shortfall or default on the borrower's debt.

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