Commercial Loans: Personal Guarantee?

[Trevor Ewen]

I have a friend who is an experienced investor of a different era (started investing in the 50s). He has an interesting quote that he shared with me on the first occasion we met:

"Whatever you do, don't personally guarantee your loans. When someone personally guarantees a loan, we call him a schmuck with a fountain pen."

He is known for strongly-worded advice, but I wanted to know what people think of this, only in regards to commercial financing. Obviously, conventional loans are personal, not an easy way around that one.

I am hoping to (with partners) put together a commercial deal with less than $1m in financing by the end of the year. I can only assume the vast majority of lenders will prefer a personal guarantee. Am I out of my mind if I expect to get something guaranteed against the assets only?