1, the formal guarantee company is only a bridge between banks and enterprises, which plays the role of capital leverage and amplification, and will not absorb, store and lend on its own. The money is still put by the bank and guaranteed by the guarantee company.
2. A formal guarantee company will have a business license for financing guarantee institutions issued by the Financial Work Office of the local provincial people's government.
Article 3 1 of the Regulation on Supervision and Administration of Financing Guarantee Companies stipulates that financing guarantee companies shall submit business reports, financial reports, annual audit reports issued by certified public accountants and other documents and materials to the supervision and administration departments in accordance with the regulations.
Where a financing guarantee company conducts business across provinces, autonomous regions and municipalities directly under the Central Government, it shall report the business development to the supervision and administration department of its domicile and the supervision and administration department of the place where the business occurs every quarter.
According to the above provisions, if a financing guarantee company only operates across provinces and does not set up branches, it does not need to report to the supervision and management department for approval, but only needs to report the business development to the supervision and management department of its domicile and the supervision and management department of the place where the business occurs quarterly.