UK Finance Companies

Finance Companies in UK

UK Finances and Loans » UK Finance Companies

UK Finance Companies

Finance companies are institutions, which offer loans to individuals and businesses against a collateral. A finance company unlike a bank obtains its finances from banks, institutions, and other money market resources like mutual funds. The interest rates which these institutions charge are usually higher than banks or credit unions. However, it is much easier to obtain a loan from these finance companies. Finance companies generally have a high credit rating and as a result are able to borrow at interest rates much below the existing market rates. This enables them to offer loans at rates which are not too higher than bank rates. The only drawback is that the finance companies tend to be sensitive to fluctuations in market rates as these variations can directly affect their profits.

Finance companies can be categorised into three types:

Consumer finance companies
specialise in small loans and lend money, usually to individuals.

Sales finance companies
are those which purchase the installment sales agreements of retailers at a discounted price.

Commercial finance companies
offer loans to businesses such as manufacturers and wholesalers. Assets such as debtor accounts, inventories, or capital equipment are used as security for the loans.

UK Finances and Loans does not represent any particular loans or finance company. When requesting a loan from any of the online loans or finance companies listed you are dealing directly with the loans or finance company. We are not responsible for the transaction or any problems with applications or loans arranged through any of the online loans or finance companies listed on this site.

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