A guarantee company is when an individual or enterprise borrows money from a bank. In order to reduce risks, banks do not lend directly to individuals, but require borrowers to find a third party (guarantee company or qualified individual) to provide credit guarantee for them. Therefore, the two are a third-party cooperative relationship.
When an individual or enterprise lends money to a bank, in order to reduce the risk, the guarantee company will ask the borrower to issue relevant qualification certificates for review according to the requirements of the bank, and then hand over the audited materials to the bank, which will lend money after review, and the guarantee company will charge corresponding service fees.