6-46 In financing their asset growth,finance companies

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Finance companies heavily rely on short-term financing such as commercial paper to finance their asset growth. They also use less equity capital than commercial banks and do not issue demand deposits, but can issue time deposits. While they may use some bank loans, they generally rely more on non-bank sources of funding. They may issue long-term debt and bonds, but these typically make up a smaller portion of their financing mix compared to short-term commercial paper.

6-46 in Financing Their Asset Growth,finance Companies