Definition of In-house financing:
In-house financing is 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.
In-house financing is provided by many retailers helping to facilitate the purchasing process for customers. Retailers must have an established lending business within their firm or partner with a single third-party credit provider to service a loan for their customers. In-house lending benefits consumers in that they are typically able to obtain a loan through the company where they may not have been able to through traditional financing means, such as via a bank.
A situation where a seller provides customers with loans to purchase its goods or services. This is a well known practice in vehicle sales and has become increasingly popular with consumer-goods retailers to give customers more payment flexibility, for example splitting the cost of a new television over several months rather than one up-front payment.
How to use In-house financing in a sentence?
- Approval for a loan is typically easier and the process simpler when financing is obtained through the retailer.
- With the emergence of technology firms and mobile apps, point-of-sale financing allows for immediate financing for consumers.
- The need for banks or other third-party lending institutions is eliminated through in-house financing.
- In-house financing is when a retailer extends a customer a loan for the purchase of its goods or services.
- The automobile industry has been one of the largest industries utilizing in-house financing.
Meaning of In-house financing & In-house financing Definition