Finance CompanyFinancial Dictionary -> Banking -> Finance Company
A financial company may be a bank, credit union, loan company or other financial institution. When offering loans, these institutions may require collateral to secure the loans. In the case of a loan for an automobile, they will usually require the vehicle's title as collateral until the loan is paid back in full. For a business loan, the financial company may use equipment of the business as collateral.
When looking for a financial company to deal with, take into consideration that a consumer finance company often charges a higher rate of interest than a bank or credit union. Credit unions often offer their members the best rates, but some bank rates are competitive. It's best to shop around and gather information from several sources before deciding on which financial company is best for you.
Some companies offer loans that are not secured by collateral. Usually these are small loans that may range from $1500 to $5000. One such company is American General Finance, headquartered in Evansville, Indiana. It is one of the largest consumer credit companies in the United States. Companies such as this often require direct deposit from their customers and payments are usually due according to their client's paydays.
Whether you are in the market for a business loan or a personal loan, be sure to seek out every avenue, each type of financial institution, in order to get the best interest rate and the best terms for you. A bank, credit union, loan company or other financial company should provide you with enough information via telephone, email or in person to decide what's best for you, whether it be a large or small loan or a long-term or short-term loan.