In-House Financing
A type of seller financing in which a firm extends customers a loan, allowing them to purchase its goods or services. In-house financing eliminates the firm's reliance on the financial sector for providing the customer with funds to complete a transaction. Investopedia Says:
The automobile sales industry is a prominent user of in-house financing. Because many vehicle sales rely on the buyer taking a loan, in-house financing allows the firm to complete more deals by accepting more customers. Whereas banks or other financial intermediaries might turn down a loan application, car dealerships can choose to lend to customers with poor credit ratings. Related Terms:
Credit Rating
Financing
In-House
Loan
Vendor Financing |