Research On Credit Guarantee Risk Control Of YX Financing Guarantee Co., Ltd

Financing guarantee companies play an important role to ease the financing difficulties, but problems also exist, such as security agencies’ unclear development pattern, high ratio of risk-sharing and low guaranteed rates, low magnification and so on. Due to the lack of effective policy support, credit enhancement mechanisms, many outstanding SMEs cannot be financed directly through the bond market, as well as to indirect financing cannot meet the financing needs of SMEs. Thus, to the financing guarantees companies, there is high risk management characteristics on financing guarantees, therefore, guarding against and fending off risk is financing companies’ s core competence.This article is based on the domestic and international financing guarantees theory and data of literature review, by selecting the YX security company as a sample of study, the financing guarantee risk control process of case studies, the article aims to analyze specific cases, to solve small corporate finance issues, and to promote the healthy and sustainable development of enterprises.First, the paper describes the basic situation of YX company, analyzes details of the company’s relevant business operations and guarantee business pattern, based on the guarantee-based business processes, from the pre-credit insurance investigations, credit review, secured lending, after management and enterprise repayment, five processes, the article analyzes the company’s business risk, and concludes that YX company is facing challenges such as high guarantees rates, small individual projects guarantee amount, single anti-guarantee measures, lacking of business types.Secondly, from four aspects of business processes, guarantee service, integrated management and the external environment, the paper gives a detailed analysis of risk points, digs deep reasons behind the security risk points, and combined with the specific guarantee projects, the article studies on operating guarantee programs, various aspects of risk points and how to determine whether to provide the applicant financing guarantee.Finally, based on YX corporate finance guarantee business risk control, the paper proposes that strict implementation of the guarantee process is the performance of the core risk-resisting abilities of financing guarantee companies. Financing guarantee companies focus on risk control and credit investigation before business. Faced with ever-changing market environment, financing companies should look for constructive personnel and expand the sources of funding, for the purpose of formatting interactive triangle virtuous cycle mechanism of financing guarantee company, the applicant and the bank.