Define: Finance Company

UK Accounting Glossary

Definition: Finance Company



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Full Definition of Finance Company


A finance company is an organization that originates loans for both businesses and consumers. Much like a bank, a typical finance company acts as a lending entity by extending credit. However, the main difference between a bank and a finance company is that, unlike a bank, a finance company does not accept deposits from the public. Instead, a finance company may draw funding from banks and various other money market resources. A finance company may extend credit to individuals for various consumer purchases, as well as to corporations for commercial use. A finance company may also specialize in providing financing for a variety of instalment plan sales. A finance company may also be affiliated with a manufacturing firm or a holding company.


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Finance Company. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 20, 2020 https://payrollheaven.com/define/finance-company/.
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Finance Company. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/finance-company/ (accessed: February 20, 2020).
American Psychological Association (APA):
Finance Company. PayrollHeaven.com. Retrieved February 20, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/finance-company/

Definition Sources


Definitions for Finance Company are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February 2020.