6-38 This type of finance company competes directly with depository institutions for consumer loans because they can frequently process loans faster and more conveniently.

Question

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Sales finance institutions specialize in providing loans for consumer purchases, such as cars or household appliances. They often work closely with retailers to offer financing options at the point of sale. Because of their specialization and focus on convenience, they can often process loans faster than traditional depository institutions, making them direct competitors.

6-38 This Type of Finance Company Competes Directly with Depository