Class Notes FNCE 4000 - Class Notes FNCE 4000 Ch 3 Finance...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Class Notes FNCE 4000 Ch. 3 – Finance Companies Types Sales Finance Institutions – make loans directly to consumer of retailer/manufacturer often at location of purchase (consumer loans) Personal Credit Institutions – make installment and other loans to consumers, usually to consumer’s other outlets deem too risky (buy used car, low income) Business Credit Institution – make business loans o Usually make more money than depository institutions due to riskier loans/higher rates – most companies overlap into all 3 Captive Finance Company – financial institution wholly owned by a parent corporation Balance Sheet Comprised primarily of consumer/business loans Increases in real estate loans & other assets Consumer Loans o Motor vehicle loans/leases o Charged higher rates than commercial banks, now often offer lower rates than commercial banks (post-9/11) o Riskier customers Subprime lender finance companies “Loan shark” firms with rates as high as 30+% o
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern