The principle of legal, voluntary and honest shopping

The principle of legality means that the negotiation of loan terms should comply with relevant laws and regulations. The principle of voluntariness requires both the guarantee company and the cooperative bank to sign the contract out of their own will, not under the environment of non-economic coercion. In China, when agreeing on loan terms, special attention should be paid to excluding the influence of administrative intervention by government departments. The principle of good faith stipulates that once the loan terms are negotiated, all parties should keep their promises and try their best to fulfill their obligations to ensure the smooth completion of the contract.

The principle of equality and fairness

The principle of equality and fairness means that both sides are equal economic subjects, and when negotiating specific conditions, one of them cannot use its dominant position to seek unequal interests for himself. It is particularly important for both parties to abide by this principle when agreeing on loan terms. At present, the guarantee company is small in scale and in a weak position compared with banks. Therefore, in the process of carrying out the guarantee business, the bank gains income but bears little risk. This is not in line with the principle of equal interests and risks, and it is not conducive to the development of long-term stable relations between the two sides.

In addition, because banks have the advantage of knowing the use of corporate funds, they also need to bear certain risks in order to successfully implement the guarantee conditions, thus prompting banks to actively supervise the use of corporate funds. Finally, from the practice of the development of guarantee institutions in developed countries, cooperative banks in these countries also bear certain risks. In different countries, the proportion of risk is different. Some national cooperative banks bear a higher proportion, reaching 30% ~ 50%; Some countries bear a lower proportion, but there are also 10% ~ 20%.

The principle of doing what you can.

The principle of living within our means means that both guarantee companies and cooperative banks should conduct business according to their own actual conditions when agreeing on loan terms. For a guarantee company, it should carry out business and operate steadily according to its own scale and the actual situation of the enterprise. You can't blindly improve the level of guarantee and take too many risks in order to attract business, which may eventually damage your own assets, profits and reputation.