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Glite Dictionary
sales finance company

sales finance company

6.0
A company that buys monthly payment agreements from stores and collects payments from customers
  • noun
  • Specialized
translation icon : compañía de financiamiento de ventas
  • The retailer sold its installment contracts to a sales finance company to receive immediate cash.

Examples

  • Many automobile dealers work closely with a sales finance company to manage their financing operations.

  • A sales finance company usually collects monthly payments directly from the customer.

  • A sales finance company can help retailers manage their cash flow.

  • Many sales finance companies offer flexible payment plans.

  • A sales finance company purchases installment contracts from stores to help them with cash flow.

  • Retailers often partner with a sales finance company to facilitate customer payment collections.

  • By selling its installment contracts to a sales finance company, the merchant can obtain cash quickly.

Synonyms

finance company
vssales finance company
5 3.5

A business that lends money to people or small businesses

buys installment contracts from retail merchants and collects payments

Surface Forms

sales finance company singular
sales finance companies plural

Morphology

sales + finance + company

The meaning 'a company that provides finance related to sales' is directly and transparently derived from combining 'sales' (selling activity) + 'finance' (providing funds) + 'company' (an organization). Although the exact technicalities (buying installment contracts at a discount) are specialized, the basic concept is predictable from the constituents and follows common noun-compound composition patterns.

Etymology

Sales finance company comes from a simple business picture: a shop sells something on monthly payments, and a finance company buys the sales contract and then collects the payments. So it means 'a company that buys sellers' payment contracts and collects the money'.