The guarantee company guarantees the borrower's credit. When the borrower fails to repay the loan within the time limit, the guarantee company will repay the loan on its behalf as scheduled.

the main business of guarantee companies is to provide loans, financial leasing and other economic contracts for small and medium-sized enterprises. And personal consumption loan guarantee, personal business loan guarantee, automobile consumption credit guarantee, project investment, financing management, etc. The guarantee risk existing in the business of the guarantee company is mainly the possibility of the loss of the guarantee subject, which can be divided into two categories: systematic risk and random risk.

extended materials

the guarantee company will ask the borrower to issue relevant qualification certificates for review according to the requirements of the bank, and then submit the reviewed materials to the bank, which will release the money after review, and the guarantee company will charge corresponding service fees. To put it simply, the guarantee company is to guarantee the borrower's credit. When the borrower fails to repay the loan within the time limit, the guarantee company will repay the loan on its behalf as scheduled.

Guarantee companies are generally divided into two categories: one is financing guarantee, such as loans, discounted bills and project financing; The other kind is non-financing guarantee, such as litigation preservation guarantee and project performance guarantee. Common guarantee companies are mostly engaged in the first type of guarantee business.

Baidu encyclopedia-guarantee company