What does a financing guarantee company do?

A financing guarantee company refers to a limited liability company or a joint stock limited company established according to law and engaged in financing guarantee business. Their main function is to provide guarantee for debt financing such as loans and bond issuance of the insured. When the guarantor fails to perform the financing debt owed to the creditor, the guarantor will bear the guarantee responsibility agreed in the contract according to law. The registered capital of a financing guarantee company is paid in, which is different from the subscription registration system of general industrial and commercial enterprises. A financing guarantee company can operate a variety of financing guarantee businesses, such as loan guarantee, bill acceptance guarantee, trade financing guarantee, project financing guarantee, letter of credit guarantee and so on.