What is a warranty company?

The guarantee is a certainty with one party to fulfill the contract concluded by the other party. This may exist whether the contract of physical goods or intangible services received by the other party. The warranty company is usually an enterprise that promises to ensure or protect the value of transactions offered by another company that does not receive profit. Members of the warranty company act as guarantors and contribute to the nominal fee for its securing. They are also preferred by sports clubs, member departments, workers and other social organizations. In this part of the world, the warranty company must include the word limited in its name and cannot distribute profits to its members. Also, they cannot divide companies into stocks and distribute them to members. Such activity would be considered as a registered capital and violates the provisions for warranty companies established in the Act on British Companies of 2006. These warranties can be divided into two categories - guarantees protecting the buyer and sellere, or guarantees to protect the creditors and debtors. Both are used to ensure any claims filed with one party against the other for various reasons related to business transaction between them.

ensures that the buyer and the seller are protected by: offer bonds, warranty warranty, performance bonds, warranty for warranty obligations, payment guarantees and compensation for the missing classification Act. Offer bonds are usually used in international exports and are used to protect the value of a product or contract. Backup warranties are generally used in international exports and domestic stores to guarantee the provision of services or product to the buyer who paid for the goods before sending. Executive bonds used at national and international levels ensure any claims that the buyer imposes against the seller for lack of delivery of goods or services.

warranty obligations protects from vaDami in traded goods or services. Payment warranty usually protects the seller if the buyer decides not to pay for goods and services. Compensation for the missing convict is used to protect dealers and sender when the goods and a convosy, list the items in the shipment are not coming, the consignment itself does not come.

ensures that the protection of creditors and debtors usually focuses on securing the credit line. The warranty protects the creditor if the debtor is unable to repay the debt. This Type usually provides a loan amount and a small margin that would take into account the interest on the original loan.

In China, the purpose of the warranty company is more similar to the type of creditor's debtor. The Chinese Regulatory Committee for Banking has created preliminary measures for the management of financial warranty companies to regulate these types of companies. Pre -measures describe a warranty company as a company that seeks their customers financially secure loans and other types of money financingEconomic institutions such as banks. Unlike British enterprises, Chinese warranty companies may have shareholders who are usually obliged to carry out regular cash investments in the company and can earn profits from it.