A Medial Finance Company, in layman terms, is the company that is only concerned mainly about with supplying money to the consumers, for hire purchase transactions or any other needs. Since these types of companies don’t take any deposits from the public, they’re not classified as banks and thus not bound by strict rules and regulations. They obtain fund either on their own or through the help of their own parent corporations. They provide credit to customers equal to the assets kept as pledged. Following are some of the services provided by a Medial Finance Company.
Four Types Of Special Services Provided By A Medial Finance Company
- Personal Loans
If someone is not qualified to obtain loans from a bank, he or she might do so from a Medial Finance Company. The loan must be secured by a tangible personal asset. Loans from a Medial Finance Company will be costlier than a bank. http://moneybank.fi is one website that contains various precise records of numerous medial finance companies.
- Loans Based On Assets
These types of loans are provided with the help of pledging various types of receivables, inventories and pieces of equipment. This loan is very much popular for people who are low on cash and want to get a loan very quickly.
- Helping In Factoring
Factoring is the process by which a manufacturer sells all its inventory at 80 per cent cost to the company. The company then sells the products and as it obtains money from customers, the manufacturer gradually gets the rest 20% back – less the company’s commission fees.
- Loans In Installments
Medial Finance Companies also help in buying or large consumer appliances, by financing the total price of the appliance, and the customer shall have to pay back the amount in equal monthly installments. Sometimes there is an attraction of interest, other times it is not, thereby making the purchase of costly electronics easier nowadays.