What are the basic knowledge of financing guarantee?

Hong Kong Xintong-Today I will introduce to you the basic knowledge of financing guarantees，Let’s learn together! one、Definition of financing guarantee 1、Definition: Financing guarantee company refers to a company established in accordance with the law，Limited liability companies and joint stock companies operating financing guarantee business。

Financing guarantee refers to the agreement between the guarantor and creditors such as banking financial institutions，When the guaranteed party fails to perform the financing debt owed to the creditor，The guarantor assumes the guarantee liability stipulated in the contract in accordance with the law。

1. Features When borrowing money from a bank，Banks to reduce risks，Do not lend money directly to individuals，Rather

Require

Lender provides guarantee；In order to obtain loan funds, the lender，Improve loan credit，Find a guarantor to guarantee it；The guarantee company is based on the bank’s

Require

，Ask the borrower to provide relevant qualification certificates for review，Then submit the reviewed information to the bank，Loan after bank review，The guarantee company charges corresponding services

cost

；4、The guarantor bears the risk that the borrower fails to repay principal and interest when due.，and charge a certain ratio of guarantee to the borrower

cost

；5、Belongs to short-term lending behavior，One of the many businesses in the money market。

two、The value of financing guarantee companies

1. Reduce bank loan risks，Stimulate investment demand；
2. Transferring risks through guarantees，Lower loan threshold，Meet borrower needs；
3. Can broaden financing channels for enterprise development；
4. Can enhance the competitiveness of small and medium-sized enterprises；
5. Effective supervision of enterprises can be increased，Reduce corporate debt risk，More effectively promote the healthy development of enterprises。

three、Business scope

1. Can run a business
2. loan guarantee；
3. Bill acceptance guarantee；
4. trade finance guarantee；
5. project finance guarantee；
6. Letter of credit guarantee。
7. Can run a business concurrently
8. Litigation Preservation Guarantee；
9. bid security、advance payment guarantee、Project performance guarantee、Other performance guarantee services such as guarantee for repayment of final payment as agreed；
10. Financing consultation related to guarantee business、financial advisor；
11. Invest with own funds。
12. Not allowed to engage in business
13. Taking deposits；
14. grant loans；
15. Trusted to grant loans；
16. fiduciary investment。Four、Processing conditions
17. Eligible company to apply
18. Registered capital is not less than 100 million，And it is actually paid。
19. Have a physical office address。
20. Senior managers have been engaged in guarantee or financial work for more than 3 years or have been engaged in related industries for more than 5 years。
21. Legal person shareholders have been operating continuously for more than 3 years，Profitable for the last two consecutive fiscal years，The cumulative net profit in the past three years has been more than 10 million yuan，The asset-liability ratio is not higher than 70%，Net assets are not less than 50 million yuan。
22. Natural person shareholders have certain industry backgrounds，Industry background description and supporting materials are required。

five、

Process

1. Review qualifications；
2. Determine company shareholders、Amount of investment、Capital contribution ratio and company personnel arrangements；
3. name approval；
4. Apply for business license；
5. Apply for business license。six、

Things to note

The applicant company needs to clarify its business direction，If the newly established financing guarantee company does not carry out business within six months, the business license will be revoked。The business license of a financing guarantee company is valid for 5 years，You can apply for renewal upon expiration and if you meet the conditions。

If you still want to know more about this aspect，Welcome to consult Hong Kong Xintong at any time!

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