Despite the existence of attractive investment projects sometimes the businesses/entrepreneurs do not dispose of sufficient collateral and so cannot get access to the needed credit from banks. Thus, the Mutual Guarantee is a mutual support system, which consists in providing to the bank financial guarantees on behalf of a company to facilitate the obtaining of credit under the right conditions for investment and activity cycles of each company. This is a private system of financial support that aims to support investment, development, modernization and internationalization of these companies, facilitating access to credit.
- Access to bank credit despite of not having sufficient collateral
- Might obtain interest rates significantly lower due to Mutual Guarantee protocols
- Can be expensive than other options due to interest payments