What is the primary function of finance companies?

The primary function of finance companies is to provide loans and credit to individuals and businesses for various purposes, such as purchasing goods, financing education, or funding operations. Unlike traditional banks, finance companies often specialize in specific types of loans, such as auto loans or personal loans, and may cater to borrowers with less than perfect credit. They typically earn revenue through interest on loans and fees for their services. Additionally, finance companies may also offer leasing and investment products.