guarantee

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A guarantee can be defined as a person or entity to whom a guaranty is made. A guarantee is entitled to receive the payment as a creditor to whom a guaranty is made. A guarantee holds the right to receive payment as a creditor first from the debtor, then from the creditor. Also, a guarantee could be an alternative spelling of the word guaranty, the promise to the creditor, itself. One must be careful to read the context of the term.

See also: debtor and creditor

[Last updated in March of 2022 by the Wex Definitions Team]