Financing?

[brandon184]

Is it legal for a company to offer it's own, in-house financing? Or do all these companies simply go through financial services institutions to help them offer financing to their customers, because they can't afford to do so themselves?

- Brandon

[justy]

Explain further, at what level of financing are we talking?

Company products bought and deducted from salary at source from employees, or a company offering finance to potential customers?

[Theophylact]

Can't imagine it's illegal, whichever it is. GM offers its own financing to auto purchasers. You can take back a mortgage from a buyer when you're selling a house. Lots of companies have credit unions for their employees.

[Ed_S]

Certainly, it's legal. Actually very commonplace in my business - wholesale auto parts.
Our customers - shops & body shops - fill out credit apps if they want to charge with us. Once approved, they just sign for their orders & pay monthly (hopefully). And yes, we do have those that, errr..delay... and we have to do collection work - which WE do, unless it gets out of hand, then a collection agency is hired. No bank is involved. If a dealer borrows, HE owes the bank, but the customers still owe him.

Totaly legal, and the charge agreement will stand up in court as a legitemate financial commitment.

Not something you'd want to do unless you can afford to have large sums floating constantly. I'd say that at any given moment our owner has $200K+ out there, minimum.