Borrowing companies borrow money from banks. When the loan expires, the borrowing company needs to repay the loan and borrow the new and return the old. Borrowing companies often need to borrow new ones only when they can't afford the old ones. In order to solve this problem, the borrowing company sometimes looks for a temporary loan from the guarantee company, and then returns it to the guarantee company after the bank lends money. This is the so-called bridge loan.
Process: customer application-approval by guarantee company-signing contract-issuing loan to settle bank loan-issuing new loan by bank-recovering loan by guarantee company.