How do financing guarantee companies make money?

From a practical point of view, the income sources of guarantee companies mainly include the following:

1, guarantee fee: generally around 3%/ year, not too high.

2. Consulting fees: This part of the income may account for a relatively large proportion, mainly because the guarantee company introduces the source of funds for the enterprise and provides guarantees to match the fees charged after the loan transaction.

3. Investment income of self-owned funds: the investment of free funds can account for up to 20% of net assets. Although the Measures prohibit investment in high-risk businesses, guarantee companies often use these funds to issue entrusted loans, or borrow funds from private accounts and off-balance sheets more conveniently to charge high interest.