When a lending institution loans money they mostly fear nonpayment of the debt. Often these loans were implemented due to a third party’s endorsement. To qualify the endorsement the bank may require the third party guarantee the debt. This is known as having ‘Recourse’ in getting the debt paid
A personal guarantee is a document stating that an individual will ensure that a loan or some form of financial commitment will be satisfied, i.e. honored if the original originator of the loan fails to pay the loan when due.