Mutual Guarantee Societies are private guarantee institutions created by beneficiary SMEs. They typically have a cooperative or mutual statute. This means that the MGS' capital is provided directly by the SMEs that apply for a loan guarantee in form of cooperative or mutual shares. Each members has an equal voting right and participates in electing the General Assembly and Board of Directors. The Mutual Guarantee Societies are usually run by entrepreneurs, bringing an SME perspective to the risk asessment process.