What is a non-financing guarantee company?

In terms of examination and approval, the financing guarantee institution is a franchise institution, which can be registered and established in the relevant industrial and commercial departments only after obtaining the pre-approval permission of the local regulatory authorities and the business license of the financing guarantee institution. However, non-financing guarantee institutions have not implemented access management, and their registration does not require pre-administrative approval and does not hold a business license. As long as it meets the relevant provisions of the company law, it can be established directly in industrial and commercial registration or other registration. Financing guarantee institutions are licensed institutions, and non-financing guarantee institutions are unlicensed institutions.

In terms of business, financing guarantee business is a franchise business, mainly cooperating with banks to guarantee borrowers, and borrowers have bank credit lines. Non-financing guarantee institutions mainly do some performance guarantee business such as litigation preservation guarantee and bid guarantee. The former can run the latter's business, and the latter cannot run the former's business.

Generally speaking, a financing guarantee company refers to undertaking financing guarantee business. Such as loan guarantee, letter of guarantee and letter of credit guarantee. Simply put, it is the guarantee service provided for the guarantor's financing behavior.

Non-financing guarantee refers to the guarantee service provided for other acts other than guarantor financing. Such as credit enhancement service, performance guarantee and bid guarantee.

Neither a financing guarantee company nor a non-financing guarantee company can directly provide financing services to the guaranteed. Otherwise, the guarantee company becomes a loan company.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.