Guarantee Demand Letter

This Guarantee Demand Letter is used by a lender or creditor where a borrower or debtor has defaulted on an agreement that is supported by a guarantee.

It gives notice of the borrower’s default to the guarantor and requires the guarantor to pay the debt in accordance with the guarantee. It also warns that legal proceedings may be commenced without further notice if payment is not made.

What does Guarantee Demand Letter do?

It is a formal demand on the guarantor to step into the borrower’s shoes in relation to the borrower’s obligations under the underlying loan or credit agreement.

When should you use Guarantee Demand Letter?

Use this letter after a borrower has defaulted and you want to call on the guarantor to pay under the relevant guarantee.

Guarantee Demand Letter is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.