What does captive finance company mean?

captive finance company meaning in Law Dictionary

finance organization owned by a manufacturer to invest in dealers' inventories or to make financial loans to consumers buying the organization's products.

captive finance company meaning in Business Dictionary

Wholly owned subsidiary of a production or retailing firm that finances wholesale or retail acquisitions from moms and dad firm. Like, businesses these types of Ford, General Electric, and Sears have actually their particular boat finance companies which advance loans to buyers for purchasing the company's items.

captive finance company meaning in General Dictionary

a finance company possessed by a manufacturer to finance dealers' inventories or even make loans to customers buying the business's items