A financing guarantee company refers to a limited liability company and a joint stock limited company established according to law and engaged in financing guarantee business. Financing guarantee refers to the behavior that the guarantor agrees with creditors such as banking financial institutions that when the guarantor fails to perform the financing debts owed to the creditors, the guarantor shall bear the guarantee responsibilities stipulated in the contract according to law.
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 may concurrently engage in 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; (four) to invest with its own funds; (5) Other businesses specified by the regulatory authorities.
In addition, a financing guarantee company can provide re-guarantee for the guarantee liability of other financing guarantee companies and handle the bond issuance guarantee business, but it should also meet the following conditions: (1) There is no bad record of violation of laws and regulations in the past 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.