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 business loan guarantee, automobile consumption credit guarantee, project investment, financing management, etc. The guarantee risks existing in the business of guarantee companies are mainly the possibility of losses of the guarantee subjects, which can be divided into two categories: systematic risks and random risks.
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 materials that have passed the review to the bank. After the bank has passed the review, the loan will be released, and the guarantee company will charge the corresponding service fee. Simply put, the guarantee company is to guarantee the credit of the borrower. When the borrower fails to repay the loan within the time limit, the guarantee company will repay the loan on its behalf 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