Usually, guarantee companies only provide loan guarantees for others. Specific loan funds are provided by banks, and guarantee companies do not lend directly. In this case, the guarantee company may withdraw the order, or attach conditions to guarantee, or the guarantee company will not pay its debts after problems occur. These are huge risks for banks.

In addition, there are also guarantee companies that provide credit loans themselves. This situation is risky for the guarantee company. Maybe the customer is not well managed and can't pay back the money. This loan may become a non-performing loan after the term expires, which is the biggest risk.