Our finance company is one of modern financial institutions render a wide range of services such as opening credit, mortgage or car loans, credit cards, consumer credits for purchasing of consumer goods. Among its services are also included car- and medical- insurance, and trade the time-sales contracts or providing small-loans to consumers.
The history of consumer credits and small-loan organizations goes back to 1900s. Before, the consumer needs in loan had been supplying through unlawful “loan shark” due to absence benefit for banks from small loans with low rates, which the government had adopted. In 1911 the situation was changed, due to several states in the United States, which approved new laws about small-loan, allowing finance organization to set rates above usury levels. Such remedy made it financially relevant for operation with a consumer loan business. Nowadays many financial companies successfully adopted these directions both the providing of business loans and the offers of consumer credits.
In most countries such as Denmark, Belgium, and Norway, the institution of commercial bank has also been the main direct supplier of consumer credit.
For the other countries, it works as a capital source, supplying to specialized finance organizations. Australian, Netherlands and financial organizations from Great Britain tend to be closely related with commercial banks; this situation was shaped due to the bank plays the role of capital supplier. Also, commercial banks take a directly part in credit line increasing to finance companies.