Captive Finance Company for Dummies
noun
What does Captive Finance Company really mean?
Alright, so, a captive finance company is like a unique kind of company that helps people buy stuff, like cars or electronics, when they don't have all the money right away. Let's say you really want a new phone, but you don't have enough money to pay for it all at once. That's where a captive finance company comes in.
They work with the store or the brand to give people loans or credit cards so they can buy the things they want. So, in the case of the phone, the captive finance company would let you pay for the phone in smaller amounts over a period of time, instead of all at once.
They're called "captive" because they're usually owned by the same company that's selling you the thing. It's like if your favorite ice cream shop also had a bank inside that offered you a loan to buy their ice cream. They're kind of tied together in a way.
So, the "captive finance company" basically helps you buy stuff by giving you a way to pay for it over time. It's like a partnership between the store and a special money company that makes it easier for people to buy things they can't afford upfront.
And that's pretty much it! It's just a way for people to get the things they want without having to pay for it all at once. Cool, right?
They work with the store or the brand to give people loans or credit cards so they can buy the things they want. So, in the case of the phone, the captive finance company would let you pay for the phone in smaller amounts over a period of time, instead of all at once.
They're called "captive" because they're usually owned by the same company that's selling you the thing. It's like if your favorite ice cream shop also had a bank inside that offered you a loan to buy their ice cream. They're kind of tied together in a way.
So, the "captive finance company" basically helps you buy stuff by giving you a way to pay for it over time. It's like a partnership between the store and a special money company that makes it easier for people to buy things they can't afford upfront.
And that's pretty much it! It's just a way for people to get the things they want without having to pay for it all at once. Cool, right?
Revised and Fact checked by Michael Davis on 2023-11-13 21:46:22
Captive Finance Company In a sentece
Learn how to use Captive Finance Company inside a sentece
- When you buy a car from a dealership and the dealership also offers a loan to help you pay for the car, that loan is from a captive finance company.
- If you get a credit card offer from a store where you like to shop, and the credit card is issued by the store itself, that store probably has a captive finance company.
- Some big retailers have their own captive finance companies, so when you want to buy something expensive, they can offer you a loan to help you pay for it.
- When you see a sign at a car dealership that says '100% financing available', that usually means the dealership has its own captive finance company.
- If a computer company offers a payment plan for you to buy one of their computers without having to pay all at once, that company probably has a captive finance company to handle the payments.
Captive Finance Company Hypernyms
Words that are more generic than the original word.