Research On Legal Issues Of Commercial Guarantee Company’s Development

Commercial guarantee company (CGC) specializes in guarantee, whose nature is profit-seeking. In order to solve the problem of financing, it is developed as a part of the guarantee companies for small and medium-sized enterprises. For a long time, CGC’s main business is credit and loan guarantee, building a financial bridge between enterprises and financial organizations. When the secured party can’t perform its obligation, CGC will undertake the obligation and pay off instead. Its existence and development has important significance in solving the financial problem, preventing and dissolving financial risk, promoting the progress of small and medium-sized enterprises and the national economy.With the development of economy, the commercial company’s business in small and medium-sized enterprises is squeezed, however, because of its own characteristic, mutual guarantee company and policy guarantee company have no match for it on advantage and value. Apart from giving service to small and medium-sized enterprises, CGC is expanding its business and looking for new orientation. TO some extent, <Temporary Management Measures of Financial Guarantee Companies> makes the development of CGC smoothly. But CGC still faces many legal issues, for example, lacking special legislation, imperfection in supervision, inequality with banks, bad credit environment and so on. To give full play to the commercial guarantee companies’role, these problems needs to be solved.We should know commercial guarantee company’s legal status, then provides legislation for its development as security. At present, according to <Management Measures>, we should make the measures related more perfect, including industry access and exit, business management, company management, risk diversification and control systems. Moreover, we should promote the corporation between banks and guarantee companies. Making the credit system more favorable is also important. All in all, we should provide internal and external security for the development of the commercial guarantee company.