An accommodation party is an individual who signs a financial instrument, such as a note, as a favor to another party without receiving any compensation or benefit, thus guaranteeing the debt of another individual.
A guarantee that ensures any advance payments made by a customer will be reimbursed if the company cannot fulfill its contractual obligations.
A UK government scheme designed to encourage bank lending to smaller enterprises by providing a 75% guarantee on company overdrafts, while the borrower remains liable for 100% of the loan amount. It is available to UK companies with a turnover of no more than £41M.
