1. Tell you what the guarantee company does in one sentence: you contribute to his loan and I guarantee it. Two sentences tell you what the guarantee company does: Zhang San borrows money, Li Si contributes, and the guarantee company guarantees. If Zhang San doesn't pay back the money, the guarantee company will return the money to Li Si. 3. Tell you the process in detail: Zhang San wants to borrow 654.38+10,000 yuan for a period of one year, with a property worth 200,000 as collateral. Li Si is 65,438+10,000 yuan, and the two sides don't know each other and trust each other. At this time, we need a powerful person to stand up and be the guarantor in the middle. This person is the guarantee company. The role of the guarantee company is that the three parties sign a loan contract, which is notarized by the notary office. Then he helped to mortgage the property to Li Si, who lent Zhang San 6.5438 million yuan. Zhang San needs to pay the guarantee company a guarantee fee of 5000 yuan (temporarily exempted). In the meantime, the guarantee company urges Zhang San to pay Li Si interest 1 150 yuan every month, and will call Li Si to inquire about the interest on time. After the loan expires, Zhang Sanruo cannot repay it. At this time, for investor Li Si, interest is collected on time and the principal is zero risk. For Zhang San, he can raise funds quickly and realize business turnover. For guarantee companies, controlling risks can achieve profitability. Win-win for all three parties. During this period, the guarantee company only charges the lender's guarantee fee, and the investor does not have to bear any fees. The significance and advantages of the existence of guarantee companies to banks: The significance and advantages of the existence of guarantee companies to banks: Because of the high marketing cost of small loans from banks, it is difficult for small enterprises to apply for loans directly from banks, which leads to small enterprises having to seek help from financing institutions such as guarantee institutions when they have financing needs. The cost of selecting customers by guarantee institutions is relatively low, so selecting high-quality projects from them and recommending them to cooperative banks will improve the success rate of financing and reduce the marketing cost of bank microfinance. In addition, in terms of risk control of loans, banks are reluctant to invest in small loans. One of the important reasons is that the management cost of such loans is high and the income is not obvious. For this kind of loan, the guarantee institution can optimize the management process, form personalized service of post-loan management, share the management cost of the bank and eliminate the worries of the bank. Secondly, after the risk is released, the advantages of guarantee institutions are irreplaceable. The project of bank direct loan is risky, and the disposal of collateral often takes a long time, with high litigation cost and poor liquidity. The cash compensation of guarantee institutions has greatly solved the problems that banks are difficult to deal with. Some guarantee institutions can compensate after loans overdue 1 month (or even three days of investment guarantee), and the bank's non-performing loans will be eliminated in time, and then the guarantee institutions can resolve the risks through their more flexible handling methods than banks. On the other hand, the guarantee company has a fast time limit. As a bank, its inherent loan model process causes a lot of time waste for SME owners; The guarantee company just embodies the flexible mode of designing special financing schemes for different enterprises, which greatly saves the time and energy of business owners and can meet their urgent need for funds. Furthermore, the credit line granted by the guarantee company on the basis of mortgage greatly exceeds the value of the mortgaged assets. Provide more demand funds for SMEs.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.