How does the government handle the accidents of guarantee companies?

After the accident of the guarantee company, the government can only coordinate the creditors and debtors to make compensation, and is not responsible for rigid payment. At present, guarantee companies are self-financing, and the government will not pay for their bankruptcy.

When an individual or enterprise borrows money from a bank, in order to reduce the risk, the bank does not lend money directly to the individual, but requires the borrower to find a third party (guarantee company or qualified individual) to provide credit guarantee for it. 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.