A guarantee company is an individual or enterprise that lends money to a bank. In order to reduce risks, banks do not lend directly to individuals, but require borrowers to find a third party (guarantee company or qualified individual) to provide credit guarantee for them. 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 audited materials to the bank, which will lend money after review, and the guarantee company will charge corresponding service fees.
Second, generally speaking, individuals and small businesses need to provide corresponding collateral (mostly real estate) or pledge (mostly movable property) to cover the risks that banks bring to your loans. The assessed value of collateral or pledge should reach about 2 times of the loan amount. If individuals and small businesses can't provide the above mortgage, pledge or guarantee, they need to ask the guarantee company for help. After verifying your personal credit and loan use, the guarantee company will provide corresponding guarantee for the loan if it feels possible.
Third, the guarantee company should charge a certain percentage of the total loan. The guarantee company shall open a deposit account in the bank that provides the loan and deposit a certain percentage of the deposit. The maximum amount that a personal loan can usually guarantee is 30 times and a corporate loan is 6 times.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.