Definition

Noun: A finance company is a type of financial institution that specializes in providing loans to individuals or businesses. It is often affiliated with a larger holding company or a specific manufacturer to facilitate credit for purchasing that manufacturer's products.

Usage

Finance companies provide credit but do not accept deposits like banks. They are key lenders for consumer purchases and business operations. - The customer secured a loan from a finance company to buy a new car. - Many manufacturers have their own finance companies to help customers finance large purchases.

Advanced Usage

• Captive finance company: A finance company wholly owned by a manufacturer to provide credit to buyers of its products.
  • The automaker's captive finance company offered a low-interest promotion.

Variants and Related Words

• Financial institution (n): A broader term for a company offering financial services, including banks, credit unions, and finance companies.
• Lender (n): An entity that lends money.
• Creditor (n): A person or company to whom money is owed.

Synonyms

• Loan company
• Credit institution
• Lending institution

Related Phrases

• Consumer finance: The area of finance focused on lending to individuals.
• Commercial finance: The area of finance focused on lending to businesses.

Noun

1. a financial institution (often affiliated with a holding company or manufacturer) that makes loans to individuals or businesses