The difference between internal guarantee and external guarantee

Different objects of guarantee, different requirements of laws and regulations, etc.

1. Different guarantee objects: Internal guarantee means that the company provides guarantee for its own debts, that is, the company provides guarantee or guarantee for its own debts externally. External guarantee means that the company provides guarantee for the debts of others or institutions, that is, the company provides guarantee or guarantee for the debts of others to a third party.

2. The requirements of laws and regulations are different: the decision-making authority of internal guarantee is relatively low and can be decided by the internal board of directors or shareholders' meeting. The decision-making authority of external guarantee is high, and it can only be carried out after the resolution of the company's shareholders' meeting or shareholders' meeting.