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What is the difference between a sales finance company and a consumer finance company?

HIsPoCratiC

wrote...

Posts: 903

Rep:

6 years ago

What is the difference between a sales finance company and a consumer finance company?

What is the difference between a sales finance company and a consumer finance company?

Textbook

Business Essentials, Canadian Edition

Business Essentials, Canadian Edition

Edition: 8^th

Authors: Ebert, Griffin, Starke, Dracopoulos

Read 69 times

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MrEdd

wrote...

#1

6 years ago

A sales finance company specializes in financing installment purchases made by individuals or firms. When you buy durable goods (e.g., household appliances) from a retailer on an installment plan with a sales finance company, the loan is made directly to you. The item itself serves as security for the loan. A consumer finance company makes personal loans to consumers. Often, the borrower pledges no security (collateral) for the loan. For larger loans, collateral may be required.

HIsPoCratiC Author

wrote...

#2

5 years ago

Thanks for confirming, I was going to write that

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