A commercial finance company supplies short-term funds to businesses that use their tangible assets as collateral.

Question

Quizplus · Accepted Answer

A commercial finance company typically offers short-term loans or lines of credit to businesses that use their inventory, equipment, or other tangible assets as collateral for the loan. This allows the business to access financing quickly and easily, while also reducing the risk for the finance company by having assets to seize in case of default. Examples of commercial finance companies include factoring companies, equipment leasing companies, and asset-based lenders.

A Commercial Finance Company Supplies Short-Term Funds to Businesses That