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1- what is the primary function of finance companies?

1- what is the primary function of finance companies?
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Finance Comapnies: Finance companies are mainly for financing purpose to individual and corporation.

Primary funciton of finance companies is to make loan to individual and corporation. Finance companies are not bank so they cannot accept depsoits from the public. They can raise the fund through issuance of Bonds and debentures, Commercial paper and other similar funds.

Loans to individuals are included consumer loans , mortgages and other similar loans. And for corporate they provide the laon for purchase of Fixed assets, for Working capital and others.

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