The borrower applies to our credit center for a loan to finance its daily operations and business expansion strategy by providing a guarantee via a specialist guarantee agency approved by our credit center, which assumes joint liability for the loan.

Small enterprises that can find a specialist guarantee agency approved by our credit center to guarantee a full loan.

1) The guarantor is an independent or authorized legal entity, has completed registration and annual inspection procedures according to relevant laws and regulations, and has a valid business license that clearly defines the scope of its guarantee services;
2) The guarantor has obtained a valid loan certificate (card) from the People’s Bank of China and completed annual inspection procedures;
3) The guarantor has operated for at least two years and is free of guarantees for high-value nonperforming loans, ongoing lawsuits involving a high-value guarantee, and records for refusing to compensate for defaulted loans under its guarantee. None of its majority shareholders, effective controller, legal representative, and senior executives have defaulted on loans;
4) Its registered capital and paid-up capital are at least RMB50 million. Its monetary funds account for at least 80 percent of its paid-up capital, which is certified by a capital verification report or whose source is adequately documented. The limits on registered and paid-up capital should be raised for nongovernmental guarantee agencies;
5) The guarantee employs professionals in finance and project assessment. Its major senior executives have a minimum five years of experience in the fields of economics and finance;
6) The guarantor implements mature corporate governance and organizational structures, risk control and financial management mechanisms, and a strong and verifiable funding mechanism;
7) Its balances of guarantee liability and single-client guarantee, and risk provision mechanism comply with relevant government policies and its articles of association;
8) The guarantor is required to assist us with routine checks and reviews.

For cooperation with a guarantor that fails to meet the above requirements but a branch believes has business potential with controllable risks, refer the case to the risk control board for review, and then to head office for approval.