How does the guarantee company make a profit?

Guarantee companies provide guarantee services, and also require customers to provide corresponding guarantee measures, such as equity pledge and house mortgage. The mortgage rate is greater than the bank's mortgage rate, and the guarantee fee is charged at 65438+ 0.5% of the guarantee amount.

The biggest risk of a guarantee company is that the loan company or enterprise it guarantees cannot repay the bank loan. Usually, the guaranteed company will provide counter-guarantee to the guarantee company. For example: machinery, equipment, factories, real estate or land, etc. In the future, if the guaranteed company does not repay the loan, the guarantee company can auction what they mortgaged.