Financial Guarantees
MCA Financial Corporation has engaged in the financial guarantee business since its establishment in 2006. The financial guarantee business aims to facilitate financing from banks to SMEs by serving as the guarantor to the lenders so that, in the event of a borrower’s default, we will repay the principal, interest and related fees and expenses in connection with the underlying debt. We believe that these guarantees enable our SME customers to obtain financing from banks on better terms, and in a more convenient and timely manner, than in the absence of such guarantees.
Applicants contact banks or our institutional partners for their financing needs. Our specialized project managers answer questions and work with the applicant to cater to its specific needs.
The project manager makes a draft report to the risk-management department for review. If the report is approved, a letter of guarantee intent is issued. The project manager will keep applicant informed of the progress and the contract terms throughout the process
A formal and binding guarantee contract is executed by the parties. The project manager acts as liaison between the bank or other financial institutions regarding issuance of the loan.