Personal Guarantee
Closing the LLC does not kill the personal guarantee
You signed because the advance would not fund without it. The company debit feels like a company problem. It is not only a company problem. Closing the LLC, changing the DBA, or leaving the entity idle does not erase the signature.
St. Germain Strategy is a consulting firm. We are not a law firm and we do not provide legal advice. A written personal guarantee release is a close condition. We do not treat a hallway promise as done.
What the guarantee is doing
The guarantee is personal. It sits on the owner, not just the operating account. Going dark is not private. The funder already has the signature, often a UCC-1, and a path to treat a miss as default.
In a negotiation, the guarantee is two-sided. It is why the funder has leverage. It is also why a written release has to be in the close. See negotiate a merchant cash advance.
Closing the LLC is not an exit
Dissolving the company, parking the entity, or hanging a new DBA does not kill the personal guarantee. Closing a Texas LLC does not kill it either. The signature was not a company formality. It was a personal promise that the advance would get paid. Idle paperwork is not a release. The Texas operator version is on merchant cash advance help in Texas.
Company bankruptcy does not automatically erase that promise either. Bankruptcy is a legal path licensed counsel decides. It is not a consulting product and it is not a shortcut around the signature. Read MCA vs bankruptcy.
What done includes
If the file is supposed to be closed, done is more than a conversation. On an MCA with a personal guarantee, done includes:
- Payoff, or a defined close that actually ends the MCA
- ACH dead, so the daily debit is not still hitting
- A UCC-3 where that is the deal
- A personal guarantee release in writing
Without the written release, you do not have done. You have a conversation. The UCC piece of that close is on UCC lien on a merchant cash advance. The debit piece is on when daily ACH is draining the operating account.
How we work the file with a PG on it
The sequence does not change because a personal guarantee is on the file. It is why the close has to be written. See how we work a file.
- 01
Refinance / take-out
First we try to refinance a merchant cash advance. Take-out replaces the MCA with a facility the cash flow can hold. The package includes the guarantee, not a slogan after the fact. Another MCA is not consolidation.
- 02
Negotiate from a file
If take-out is not available, we do not invent it. Next is a negotiation file: balances, ACH, UCC, the personal guarantee, and what done has to look like. Close docs include the written PG release.
- 03
Counsel-prep
If the funder will not cooperate, we help you prepare a legal option with licensed counsel. We do not file. We do not stop ACH as the actor. See when you need counsel and how to get out of a merchant cash advance.
Hypothetical illustration
Hypothetical. Not a client result. A US owner signed a personal guarantee because the advance would not fund without it. Daily ACH started missing. The owner closed the LLC and figured the company problem was over. The guarantee was still on the file. Closing did not end the conversation. The work was still a refinance package if take-out existed, a negotiation file if it did not, and counsel-prep if the funder would not move. This is an illustration of the sequence. It is not a result, not a promise, and not a claim about what a funder will do.
Who this is for, and who it is not
This is for you if:
- You are a US business owner who signed a personal guarantee on a merchant cash advance
- You thought closing the LLC, changing the DBA, or parking the entity would end it
- You need a written PG release as part of a refinance or negotiated close
- You want owner-facing facts, then a file, not scare copy
This is not for:
- Consumer debt or owners outside the United States
- Anyone looking for legal advice from us. We are not a law firm
- Anyone looking for a DIY default playbook, a we-stop-ACH promise, or a 90% off claim. We do not do that
- Owners who want another advance stacked on the last one
Operator terms used on this page are defined on the merchant cash advance glossary.
Related: How we work a file · MCA debt relief · Business debt relief
Speak With Us
If a personal guarantee is on the file, put the contracts, the ACH, the liens, and the signature on the table. We will tell you what the file actually is.
FAQs
Does closing the LLC kill the personal guarantee?
No. Closing the LLC does not kill a personal guarantee on a merchant cash advance. The signature is a personal promise. Idle paperwork is not a release.
Does changing the DBA or leaving the entity idle erase the signature?
No. Changing the DBA or leaving the entity idle does not erase the signature. The guarantee was not a company formality.
Does company bankruptcy automatically erase the guarantee?
No. Company bankruptcy does not automatically erase a personal guarantee. Whether a bankruptcy path touches the guarantee is a licensed-counsel question. See MCA vs bankruptcy.
What has to be in writing for the guarantee to be done?
A written personal guarantee release. A hallway promise is not done. Payoff, ACH dead, and a UCC-3 where that is the deal still leave the signature live without a written release.
Do you stop ACH or file for us?
No. We do not stop ACH as the actor. We do not file. We are an advisory firm. We are not a law firm and we do not provide legal advice.
Who is this page for?
US business owners who signed a personal guarantee on a merchant cash advance and need owner-facing facts, then refinance, negotiate, or counsel-prep. Not scare copy. Not a DIY default playbook.
St. Germain Strategy is an advisory firm. We are not a law firm, we do not provide legal advice, and we are not a debt settlement company. We do not hold client funds. When a file needs licensed counsel, we will say so and help you prepare to work with them.
