Finance companies can be independently owned. Many are subsidiaries of financial institutions or other corporations. Several...

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Finance companies can be independently owned. Many are subsidiaries of financial institutions or other corporations. Several...

Finance companies can be independently owned. Many are subsidiaries of financial institutions or other corporations. Several automobile companies have finance subsidiaries. Discuss the advantages of a captive finance company. please do not plagiarize

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Answer 1

Answer #1

The advantages of a captive finance company include:

1. They lend loan to customers who would not get a loan by the banks or other financial institutions owing to poor credit history or other reasons.

2. It is another source of income to the manufacturer and can help him manage the manufacturing business when the sales or the market is bearish.

3. It helps in customer retention and satisfaction since finance through an in house company is usually faster than a bank approving the loan.

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Finance companies can be independently owned. Many are subsidiaries of financial institutions or other corporations. Several...

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