Question

What is finance company? Explain the functions of finance companies.

Answer 1

Answer:

Finance company, specialized financial institution that supplies credit for the purchase of consumer goods and services by purchasing the time-sales contracts of merchants or by granting small loans directly to consumers. ...They give loans and advances to the customers and also set a platform for the customers to do some investments. ... It also provide consultancy services to the clients on their investments related to the financial markets where the huge amount of risk is involved.

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Answer 2

Ur Answer:-

Definition: Finance company, specialized financial institution that supplies credit for the purchase of consumer goods and services by purchasing the time-sales contracts of merchants or by granting small loans directly to consumers.

Functions: The primary function of finance companies is to make loans to individuals; they don't receive deposits as banks do. Finance companies borrow money from sources such as the Federal Reserve System and commercial banks at a low interest rate and lend it at a higher interest rate.