According to the requirements of the bank, the guarantee company will require the borrower to issue relevant qualification certificates for review, and then submit the audited materials to the bank, which will lend money after review, and the guarantee company will charge corresponding service fees.

When an individual or enterprise borrows money from a bank, in order to reduce the risk, the bank does not lend money directly to the individual, but requires the borrower to find a third party (guarantee company or qualified individual) to provide credit guarantee for it.

Advantages of guarantee companies

1, the guarantee company has a fast time limit. As a bank, its inherent loan model process causes a lot of time waste for SME owners; The guarantee company just embodies the flexible mode of designing special financing schemes for different enterprises, which greatly saves the time and energy of business owners and can meet their urgent need for funds.

2. Furthermore, the credit line granted by the guarantee company on the basis of mortgage greatly exceeds the value of the mortgaged assets. Provide more demand funds for SMEs.