Finance company is a firm that loans money. Finance companies make loans to merchants and manufacturers. These companies also make loans to consumers. Borrowers agree to repay the loan with interest in a specified period of time. Borrowers must offer some guarantee that they will repay the loan. For example, individuals may offer a lien on their salary or personal possessions as a guarantee (see Lien). Business people who need a loan can offer property, merchandise, or unpaid bills owed to them by others as security. Some finance companies also offer credit card services that let the holder buy merchandise. See also Loan company.
