Bank loans, guarantee fees paid to guarantee companies, are expenses incurred for raising funds. Although the amount is large, it should also be included in the financial expenses. You can set up a detailed account of the guarantee fee to specifically account for this fee.

After receiving the loan:

Debit: bank deposit

Loans: short-term loans

When repaying the loan:

Borrow: short-term loans

Loans: bank deposits

When paying the guarantee fee:

Borrow: financial expenses-guarantee fees

Loans: bank deposits

Some guarantee companies charge a guarantee fee and require a deposit to reduce the guarantee risk. The deposit can be accounted for by other receivables.

Debit: Other receivables.

Loans: bank deposits

Recover the deposit after repayment:

Debit: bank deposit

Credit: other receivables

Why should the loan be guaranteed by a guarantee company? 1. It is because the loan enterprise failed to hand over enough collateral to the bank. Once the enterprise loans overdue owes interest, the guarantee company will be responsible for the payment. 2, the guarantee company involved in bank loans, bank lending procedures are simple and fast, which can quickly make up for the capital needs of enterprises. 3. Guarantee companies will require enterprises to provide various forms of counter-guarantee while providing guarantees for enterprises to obtain bank loans. These counter-guarantees are in various forms and the procedures are simpler than those of banks. Therefore, if enterprises are in urgent need of funds, they will take the form of bank loans guaranteed by guarantee companies to make up for the shortage of operating funds.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.