Finance companies

• Role


  Provide financial services for small-medium businesses. Provide loans, lease equipment, offer factoring services
• Non-Bank Financial Institutions


  Specialise in smaller commercial finance, provide mainly short term and medium term loans to businesses through consumer hire purchase loans, personal loans and secured loans
• Immediate access to funds, higher interest rates


  Lend more freely than banks and investment banks, greater risk for the lender
• Loan rates and offered products


  Influence financial decisions of firms that require funds
• Finance companies


  Raise money through share issues (debentures)
• Lenders


  Have the security of priority over the firm's assets in the event of liquidation