What is the profit channel of the guarantee industry? Simply put, the guarantee industry is a bridge between banks and small and medium-sized enterprises to establish loans.

Guarantee institutions have advantages over small and medium-sized enterprises in applying for loans directly, mainly in the discount rate of mortgage loans. If the enterprise directly applies for mortgage guarantee with fixed assets, the general loan amount is only 60%, but if the guarantee company applies for mortgage loan, this discount will be increased to 7-8 fold. In addition, the guarantee company also has its advantages in the choice of collateral. Commercial banks do not accept machinery and equipment as collateral, while guarantee companies not only accept land and real estate as collateral, but also apply for guarantees from guarantee companies, including machinery and equipment and intellectual property rights, which is especially helpful for high-tech enterprises.