What is ‘In-House Financing’
In-house financing is a type of seller financing in which a firm extends customers a loan, allowing them to purchase its goods or services. In-house financing eliminates the firm’s reliance on the financial sector for providing the customer with funds to complete a transaction.
Explaining ‘In-House Financing’
The automobile sales industry is a prominent user of in-house financing. Many vehicle sales rely on the buyer taking a loan, in-house financing allows the firm to complete more deals by accepting more customers. Whereas banks or other financial intermediaries might turn down a loan application, car dealerships can choose to lend to customers with poor credit ratings.
Further Reading
- Spatial lock-in: Do falling house prices constrain residential mobility? – www.sciencedirect.com [PDF]
- Financial integration, housing, and economic volatility – www.sciencedirect.com [PDF]
- The local geographies of the financial crisis: from the housing bubble to economic recession and beyond – academic.oup.com [PDF]
- Trends in park tourism: Economics, finance and management – www.tandfonline.com [PDF]
- Islamic House Financing: A Critical Analysis and Comparison with Conventional Mortgage – papers.ssrn.com [PDF]
- The rise in mortgage defaults – www.aeaweb.org [PDF]
- Why publicly-financed health insurance schemes are ineffective in providing financial risk protection – www.jstor.org [PDF]
- The relationship between house prices and house purchase loans: The Spanish case – www.sciencedirect.com [PDF]
