Small businesses, especially for new entrepreneurs, do not have reliable credit history that could be independently verified by lenders (Khaitan & Joshi, 2021). These lenders could be banks, suppliers, and real estate transactions. The entrepreneur could be required to provide personal guarantees in which the individual would become obligated to pay in the event that the business could not fulfill its obligations as at when due (Khaitan & Joshi, 2021). Small businesses are flexible in operations and could easily change locations, ownerships, or cease operations without notice. Suppliers could use the personal guarantee as a way to ensure that the business owner would be personal responsible for any outstanding balances owed by the business.