Market conditions:

By the end of 2016, there were 8,157 financing guarantee companies nationwide, and 216 financing guarantee companies were set up in various regions from September 2015 to November 2016.Financing guarantee companies can be established in shenzhen, guangdong, guizhou, jiangsu, hebei, hunan, jiangxi, shandong and Shanghai.Anhui, fujian, hubei, sichuan, tianjin, chongqing suspended the approval of private financing guarantee companies.

Licence value:

1. Policy: opinions of the state council on accelerating the development of the financing guarantee industry, requirements for the reform and transformation of the financing guarantee industry, so as to accelerate the development of the industry and better serve the overall situation of economic and social development.

2. Market demand: the guarantee company must obtain the financing guarantee business license if it operates loan guarantee, bill acceptance guarantee, trade financing guarantee, project financing guarantee and letter of credit guarantee.

3. Value brought to the company: guarantee companies charge 2-3% guarantee fees for providing credit guarantee for small and medium-sized enterprises or individuals, and provide low-risk and high-profit growth points for the company through investment guarantee business.

The establishment of a financing guarantee company shall meet the following requirements:

1. The shareholders have good reputation and have no major violation record in the last three years;

2. The registered capital shall not be less than RMB 20 million and shall be paid-in monetary capital;

3. The proposed directors, supervisors and senior managers are familiar with the laws and regulations related to the financing guarantee business, and have the professional experience and management ability required to perform their duties;

4. Have sound internal management systems such as business standards and risk control.