But I want to say one more thing. If your own credit information is not very good and your repayment ability is not very strong, the guarantee company is unwilling to help you, because the risk undertaken by the guarantee company is too great.
One: 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 guarantee. 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.
Second, the meaning advantage.
Because of the high marketing cost of bank micro-loans, it is difficult for small enterprises to apply for loans directly from banks, which leads to small enterprises having to seek help from financing institutions such as guarantee institutions when they have financing needs. The cost for guarantee institutions to select customers is relatively low, so choosing high-quality projects to recommend to cooperative banks will improve the success rate of financing and reduce the marketing cost of bank microfinance.
3. In addition, in terms of risk control of loans, banks are reluctant to invest in small loans. An important reason is that the management cost of such loans is high and the income is not obvious. For this kind of loan, the guarantee institution can optimize the loan management process, form personalized service for post-loan management, share the management cost of the bank, and eliminate the worries of the bank.
Four: Secondly, after the risk is released, the advantages of guarantee institutions are irreplaceable. The project of bank direct loan is risky, and the disposal of collateral often takes a long time, with high litigation cost and poor liquidity. The cash compensation of guarantee institutions has greatly solved the problems that banks are difficult to deal with. Some guarantee institutions can compensate after loans overdue 1 month (or even three days of investment guarantee), and the bank's non-performing loans will be eliminated in time, and then the guarantee institutions can resolve the risks through their more flexible handling methods than the banks.
Five: On the other hand, 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.