What kind of financial guarantees will be required?
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The financial strength of your business impacts the kind of office space you can lease. Landlords try to mitigate their risk by having the most financially secure tenants possible. This can be a differentiator for a landlord when accepting a tenant’s proposal. So, be in position to present your company in the best possible financial light. You will likely be asked for a security deposit or a personal guaranty from the founder. Be prepared to provide financial references, profit and loss statements, up-to-date credit reports, tax returns, bank statements and upfront rent (or a bank letter of credit).
Be careful about providing a personal guaranty of the lease obligations. You will be putting your personal net worth at stake. If the company fails, the guarantor will be personally liable and that is risky.