Reduce transaction costs, increase loan availability, etc.

1. The group joint guarantee model can reduce the transaction costs of financial institutions by bundling a group of small and micro enterprises together to jointly bear loan risks. At the same time, guarantee substitution can provide a more flexible guarantee method and reduce reliance on traditional collateral, thereby reducing transaction costs.

2. The group guarantee model increases the credit rating of small and micro enterprises and improves their loan availability through mutual assistance and cooperation. Guarantee substitution can provide more guarantee methods, allowing small and micro enterprises that lack traditional collateral to obtain loans.