[RichardGerard]

Merchant has numerous amounts of real estate...
net worth north of 200 mill
can not collateralize any of the properties due to covenants signed with mortgage bank
has substantial credit references from commercial banks over past 30 months over 100 million in RE loans taken and paid back already
looking for 7-10mill (but again needs to be unsecured using only personal guarantee)
-and yes I and he both know he can just use his own money but he rather not.

Several lenders work directly off a PG- knowing that if the client goes sideways they have the right to attach to the assets in a lawsuit.

To mitigate exposure many will cap the lending amount (usually 500k- example Funding Circle). As the stakes get higher, borrowers tend to not wish to make a PG and request a validity guarantee (assuring there isn't any fraud) instead.