The Personal Guarantee Letter is a crucial document in Australian business and financial transactions, commonly used when extending credit or loans where additional security is required beyond the primary debtor's commitments. It is particularly relevant when businesses or individuals seek financing but lack sufficient credit history or assets, requiring a third party to guarantee their obligations. The document must comply with Australian Commonwealth and State legislation, including the Australian Consumer Law, National Consumer Credit Protection Act, and relevant state-specific laws. It typically includes details of all parties, the scope of guaranteed obligations, enforcement conditions, and mandatory warnings and acknowledgments. Personal Guarantee Letters are extensively used in business lending, property leasing, and various commercial arrangements where credit risk mitigation is necessary.

1. Letter Header and Date: Formal letter heading including the date and address details of both the guarantor and the creditor

2. Creditor Details: Full legal name and address of the creditor/company to whom the guarantee is being provided

3. Guarantor Details: Full legal name, address, and identification details of the person providing the guarantee

4. Primary Debtor Details: Full legal name and details of the person/entity whose obligations are being guaranteed

5. Guaranteed Obligations: Clear and specific description of the debts or obligations being guaranteed, including maximum liability amount if applicable

6. Nature of Guarantee: Statement that this is a continuing guarantee and the extent of the guarantor's liability

7. Duration of Guarantee: Terms specifying when the guarantee begins and under what circumstances it may end

8. Guarantor's Acknowledgments: Specific acknowledgments that the guarantor understands their obligations and has received independent legal advice

9. Enforcement Rights: Details of the creditor's rights to enforce the guarantee and circumstances under which they can do so

10. Execution Block: Signature section with witness requirements and date of execution