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FINANCE COMPANY
Definition
Finance company is a business entity established specifically to conduct Leasing, Factoring, Consumer Finance, and/or Credit Card business.
Business Activities
The followings are business activities performed by a finance company:
- Leasing is the act of financing in the form of capital goods provision, either in the form of Finance Lease or Operating Lease.
- Factoring is the act of financing through purchasing a company’s short-term accounts receivable or invoice, along with the management upon said accounts receivable or invoice.
- Credit Card business is the act of financing a purchase of goods and/or services through the use of credit cards.
- Consumer Finance is the act of financing the provision of goods based on consumer’s needs using instalment system for its payment.