The types of guarantee can be divided into credit guarantee and payment guarantee. A letter of credit refers to a letter of guarantee in which the guarantor fails to perform his obligations to the beneficiary and the guarantor is responsible for compensating the economic losses of the beneficiary. There are mainly loan guarantee, bid guarantee, performance guarantee, advance payment guarantee, payment guarantee, maintenance guarantee and quality guarantee. Payment guarantee refers to the guarantee that the beneficiary has fulfilled his obligations within the time limit stipulated in the contract, and the guaranteed person will fulfill his payment responsibility, otherwise the payment responsibility will be borne by the guarantor. This kind of guarantee is mainly used to guarantee imported equipment, technology and leasing business projects.