Guarantee companies include financing guarantee companies and non-financing guarantee companies. This paper mainly answers the operation mode of financing guarantee companies.
1, definition
Financing guarantee company, financing guarantee refers to the behavior that the guarantor agrees with creditors such as banking financial institutions that when the guaranteed party fails to perform the financing debts owed to the creditors, the guarantor shall bear the guarantee responsibilities stipulated in the contract according to law.
2. Business scope
With the approval of the regulatory authorities, a financing guarantee company may engage in some or all of the following financing guarantee businesses: (1) loan guarantee; (2) Bill acceptance guarantee; (3) Trade financing guarantee; (4) Project financing guarantee; (5) letter of credit guarantee; (6) Other financing guarantee businesses.
At the same time, with the approval of the regulatory authorities, the financing guarantee company can run some or all of the following businesses: (1) litigation preservation guarantee; (2) Other performance guarantee services such as bid guarantee, advance payment guarantee, project performance guarantee and final payment guarantee; (3) Intermediary services such as financing consultation and financial consultancy related to the guarantee business; (4) Investing with its own funds; (5) Other businesses specified by the regulatory authorities.
A financing guarantee company can also provide re-guarantee for the guarantee liabilities of other financing guarantee companies, and handle the bond issuance guarantee business, but it shall meet the following conditions at the same time: (1) There is no bad record of violation of laws and regulations in the last two years; (2) Other prudential conditions stipulated by the regulatory authorities. Among them, the financing guarantee company engaged in the re-guarantee business shall not only meet the above conditions, but also have a registered capital of not less than RMB 654.38 billion and have been in business for more than two years.
At present, from the actual situation, most financing guarantee companies in China mainly carry out loan guarantee and litigation preservation guarantee, and some large state-owned financing guarantee companies will provide re-guarantee and handle bond issuance guarantee business.
A financing guarantee company shall not engage in the following activities: (1) absorbing deposits; (2) granting loans; (three) entrusted to issue loans; (4) Entrusted investment; (five) other activities prohibited by the regulatory authorities. If a financing guarantee company engages in illegal fund-raising activities, it shall be investigated and dealt with by the relevant departments according to law.
3. Cost standard
Financing guarantee companies take the guarantee business as their profit model, and the guarantee fee is generally 1-3 cents per year.