The main business of guarantee companies is to provide economic contracts such as loans and financial leasing for small and medium-sized enterprises. And personal consumption loan guarantee, personal commercial loan guarantee, automobile consumption credit guarantee, project investment, financing management, etc. The guarantee risk existing in the business of guarantee companies is mainly the possibility of loss of the guarantee subject, which can be divided into systematic risk and random risk.
Extended data
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. To put it simply, a guarantee company guarantees the borrower's credit. When the borrower fails to repay the loan within the time limit, the guarantee company will repay the loan as scheduled.
Guarantee companies are generally divided into two categories: one is financing guarantee, such as loan, bill discount and project financing; The other is non-financing guarantee, such as litigation preservation guarantee and project performance guarantee. Common guarantee companies are mostly engaged in the first type of guarantee business.
Baidu encyclopedia-guarantee company