Guarantee companies belong to the financial industry, but they belong to non-financial institutions and have no financial institution license. Investment guarantee company is an intermediary company that provides financing guarantee for small and medium-sized enterprises to earn profit difference.
Investment guarantee usually means that when an individual lends money to a bank, the bank does not lend money directly to the individual in order to reduce the risk. The borrower needs to find a third party to provide credit guarantee for the borrower. That is, the borrower needs to find a guarantee company to guarantee. According to the requirements of the bank, the guarantee company will require the borrower to issue relevant qualification certificates for review, and finally submit the audited materials to the bank, which will lend money after review, and the guarantee company will charge corresponding service fees.
In terms of examination and approval, the financing guarantee institution is a franchise institution. It can only be registered and established in the relevant industrial and commercial departments after obtaining the pre-approval permission from the local regulatory authorities and the Business License of the Financing Guarantee Institution. However, non-financing guarantee institutions have not implemented access management, and their registration has no pre-approval requirements and does not hold a business license. As long as it meets the relevant regulations, it can be established directly in industrial and commercial registration or other registration. Financing guarantee institutions are licensed institutions, and non-financing guarantee institutions are non-licensed institutions.
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 business.
With the approval of the regulatory authorities, a financing guarantee company may concurrently run 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 guarantee business.
4. Invest with your own funds.
5. Other businesses specified by the regulatory authorities.
A financing guarantee company may provide re-guarantee for the guarantee liability of other financing guarantee companies and handle the bond issuance guarantee business, but it shall meet the following conditions at the same time:
1. There is no record of bad violation of laws and regulations in recent 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.
The guarantee company belongs to the financial industry, but it is not a financial institution, because it does not have a financial institution license. In fact, in addition to guarantee companies, individuals can also guarantee, because being a guarantor requires certain risks, so it needs to be considered clearly.