The main business of the guarantee company includes:
1. Providing loan guarantee for individuals or enterprises: Guarantee companies provide guarantees for borrowers and help borrowers obtain loans from banks or other financial institutions. If the borrower fails to repay the loan on time, the guarantee company will be responsible for repaying the debt to the creditor.
2. Project financing guarantee: Guarantee companies provide financing guarantee for various projects, including infrastructure construction, real estate development and enterprise investment. The guarantee company evaluates the project risk, provides credit support for the project and helps the project to obtain funds smoothly.
3. Letter of credit guarantee: Guarantee companies provide letter of credit guarantee for import and export trade to ensure that both parties fulfill their contractual obligations and reduce international trade risks.
4. Bid guarantee: In the bidding process, the guarantee company provides a guarantee for the bidder to ensure that the bidder submits the bid documents in accordance with the requirements of the bidding documents and performs the contract after winning the bid.
5. Other guarantee services: Guarantee companies can also provide other forms of guarantee services, such as litigation preservation guarantee and lease guarantee.
The existence of guarantee companies helps to reduce the risks in financial markets and promote the financing of individuals, enterprises and projects. At the same time, the guarantee company will also charge a certain guarantee fee as a return for providing guarantee services. When choosing a guarantee company, we should fully understand its qualification, strength and reputation to ensure the reliability of the guarantee service.