Ask Question
BusinessBusiness
31 July, 20:55

How are direct lending and dealer financing similar? And which is the better option?

+3
Answers (1)
  1. 31 July, 21:28
    0
    See explanation below for answer.

    Explanation:

    Direct lending is the provision of credit directly to small and middle market companies (SMEs) for growth or acquisitions.

    Dealer financing refers to the type of loan which is originated by a retailer to its customers and then sold to a bank or other third-party financial institution. The bank will then purchase these loans at a discounted rate and then collect the principle and interest payments from the borrower. It is also known as indirect loan.

    The similarity between both methods is the lendee agrees to repay the loan over a period of time plus a finance charge.

    Direct lending is the better option when the dealership offers no incentive programs.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “How are direct lending and dealer financing similar? And which is the better option? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Santa Fe purchased the rights to extract turquoise on a tract of land over a five-year period. Santa Fe paid $429,000 for extraction rights. A geologist estimates that Santa Fe will recover 6,500 pounds of turquoise.
Answers (1)
Oklahoma enacts a law requiring all businesses in the state to donate 10 percent of their profits to Protestant churches that provide services to indigent persons. Price-Lo Mart files a law suit to block the enforcement of the law.
Answers (2)
Contract for Labor and Materials Galen, a purchasing agent for Ziff Construction Company, agreed orally with Houk Lumber to purchase 800 double - hung vinyl windows. The agreed price was $40,000.
Answers (2)
What are two reasons for converting a document or record into a digitized format?
Answers (1)
Plato Company acquired land with a purchase price of $150,000 plus attorney's fees ($6,000), demolition and removal costs of an old building ($4,000), and grading and filling the land ($3,000). The land should be recorded atA : $157,000.
Answers (1)
New Questions in Business
On January 2, 2020, Pearl Company sells production equipment to Fargo Inc. for $52,000. Pearl includes a 2-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on January 2, 2020.
Answers (1)
In 2020, Antle Inc. had acquired Demski Co. and recorded goodwill of $275 million as a result. The net assets (including goodwill) from Antle's acquisition of Demski Co. had a 2021 year-end book value of $610 million.
Answers (1)
According to the video, what are the two other most important ways banks make money? there little boxes you have to check off banking fees investments loaning money to overseas banks paying interest to depositors overseeing transactions between
Answers (1)
How old do you have to be to impeach the president? (btw the subject is business cause none fit)
Answers (1)
The attribution theory of leadership says leadership is merely an attribution people make about other individuals. T/F
Answers (1)
Home » Business » How are direct lending and dealer financing similar? And which is the better option?
Sign Up Forgot Password?