Pledge guarantee means that the borrower uses certain assets (such as real estate, vehicles, stocks, etc.) owned as collateral to apply for loans or financing from lending institutions or investors as a guarantee measure to guarantee the loan. or security of financing. Pledge guarantees are mainly divided into the following two types:

1. Pledge guarantee of tangible assets

Tangible assets refer to physical forms that can be used for mortgage Secured assets such as real estate, vehicles, metals, etc. In this guarantee method, the borrower uses his or her tangible assets as collateral to apply for loans or financing from lending institutions or investors. If the borrower fails to repay on time or defaults, the lending institution or investor can dispose of the mortgaged assets through legal means to recover the debt.

2. Intangible asset pledge guarantee

Intangible assets refer to assets that cannot be expressed in physical form, such as patents, trademarks, copyrights, stocks, etc. In this guarantee method, the borrower pledges its own intangible assets and applies for loans or financing from lending institutions or investors. If the borrower fails to repay on time or defaults, the lending institution or investor can dispose of the mortgaged assets through legal means to recover the debt.

In general, pledge guarantee is a relatively safe lending method. For borrowers, they can obtain higher amounts and lower interest rate loans or financing through pledge guarantee; for investors, For example, a higher rate of return can be obtained through pledge guarantee. However, it should be noted that borrowers and investors should fully understand and master the mortgage evaluation of secured assets and the handling of related procedures to avoid risks and losses.