Typical sources of financing for finance companies are

Question

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Finance companies typically obtain financing through the issuance of commercial paper. This is because finance companies are unable to offer demand deposits, can face difficulties obtaining secured loans from banks, and are often limited in their ability to attract unsecured loans from banks. Commercial paper is a short-term debt instrument that can be sold to investors and provides finance companies with a source of funding for their lending activities.

Typical Sources of Financing for Finance Companies Are