Author(s)

Chen Shuyi

Corresponding Author

Chen Shuyi

ABSTRACT

To develop guarantee industry is an important move to relieve financing difficulties for small and medium sized companies. However, guarantee industry faces great hazards that are more severe than those faced by financial institutions because of information asymmetry and minor companies’ poor resistance against risks, and it remains a problem for the industry to identify and estimate potential risks. Financial analysis, as it partly reveals enterprises’ operation status through relevant financial indicators, can provide references for guarantee decisions and help in effective prevention against financing guarantee risks.

KEYWORDS

Financing guarantee, financial analysis, risk prevention