Question:
What are the advantages finance companies (FCs) have over banks in the area of business lending? What disadvantages do they have?
Finance Companies:
Finance companies give loans to people and corporations. Unlike banks, finance businesses do not collect cash deposits from customers, nor do they offer some other functions popular to banking institutions, which include checking accounts. Finance companies generate income from the interests they impose on their loans, which are generally greater than that of the interest charges that banks bill their customers.
Answer and Explanation:1
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Advantages
- Finance firms provide choices to consumers with weak credit. The reason why finance companies might be preferable in comparison to banks...
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