Credit Guarantee Services
The main function of the Taiwan SMEG is to provide credit guarantees to SMEs which are promising but short of collateral necessary to obtain finance from contracted financial institutions.
There are three methods that the Taiwan SMEG grants credit guarantees--The Indirect Guarantee, The Direct Credit Guarantee and The Co-guarantee.
The Risk-sharing Policy
Risk-sharing arrangement is one of the features of the Taiwan SMEG. Under the arrangement, apart from the portfolio credit guarantee and certain items of credit guarantee which the Taiwan SMEG provides 100% guarantee, the Taiwan SMEG takes partial risks of SME loans, and referring financial institutions are responsible for the rest (the smaller portion of the total lending risks).
There are two reasons for the Taiwan SMEG to hold this policy. The first one is to request financial institutions to remain paying due attention to SME loan cases even though they are referred to the Taiwan SMEG for credit guarantees. The second one is, by such arrangement, to expand guarantee capabilities to more SMEs.
Management Consulting Services
The Guidance and Assistance Section of the Client services Department is functioning to provide guidance to the Taiwan SMEG's clients or non-clients in the area of financing, management, accounting, company control, etc., helping SMEs to increase the efficiency of business operation, lower the capital cost of operation, extricate from predicaments, and improve the ability to secure loans and credit guarantees.
These consulting services are provided through phone calls, interviews, or visits on the clients' sites. The Taiwan SMEG has established a Taiwan SMEG Institute which serves as a platform so that SMEs can share and exchange experiences. The institute begins its operation in July 2005.