Consumer Finance Companies
© 2001 Missouri Innovation Center
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Consumer finance
companies are usually limited to making small, secured, personal loans.
These loans are typically restricted to a couple of thousand dollars.
Loans from consumer finance companies more often than not have higher
interest rates and processing fees than the typical bank or credit union.
Consumer finance companies can assume a slightly higher degree of risk
because of the higher costs. They are comparatively less conservative and
may possibly offer a high-interest loan for candidates with poor credit
histories. Consumer finance companies are not usually the first choice
for loans, as the higher costs make it harder for small businesses and
entrepreneurs to be successful.
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