What does an investment guarantee company do?

An investment guarantee company usually means that when an individual lends money to a bank, the bank does not lend money directly to the individual in order to reduce the risk. Lenders need to find a third party to provide credit guarantee for lenders. That is, the lender needs to find a guarantee company to guarantee. According to the requirements of the bank, the guarantee company will require the lender to issue relevant qualification certificates for review, and finally submit the audited materials to the bank, which will lend money after review, and the guarantee company will charge corresponding service fees.

Private investment guarantee companies refer to borrowers who have strong repayment ability. After strict inspection and examination by the guarantee companies, they use real estate, cars or other assets as collateral to lend out funds. As an intermediary, investment guarantee companies monitor and provide guarantees for the borrower's use and recovery of funds, so that investors can obtain safety, stability and high returns, while private guarantee companies charge a certain guarantee service fee. In a word, an investment guarantee company is an intermediary company that provides financing guarantee for small and medium-sized enterprises to earn profit difference. * * * There are three kinds: small, medium and large. At present, there are only two kinds of private financing enterprises in China: guarantee companies and pawn shops.