Finance companies represent an important source of debt and lease financing to consumers and businesses. Finance companies are the second-largest category of private suppliers of credit, behind depository institutions (for example, banks, thrifts, and credit unions).

These companies focus primarily on collateralized loans such as auto, equipment, and real estate loans for both consumers and businesses. In particular, finance companies account for a significant share of consumer motor vehicle loan and lease financing. In addition, while they hold only a modest share of mortgage credit in their portfolio, finance companies account for a significant share of residential mortgage originations. Finally, their portfolios to businesses include credit and leases to finance inventory (including car dealers), accounts receivable, and the acquisition of motor vehicles and equipment.

2020 Survey of Finance Companies

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Last Update: January 14, 2025