Final answer:
Commercial finance companies, which focus on business loans, are different from companies like Citigroup that issue consumer credit cards. The statement is false because commercial finance companies typically do not issue credit cards or consumer loans.
Step-by-step explanation:
The statement given in the question is false. Commercial finance companies specialize in making loans directly to businesses rather than consumers. These companies typically offer loans to small and medium-sized enterprises that might not be able to secure traditional bank financing. They are not the same as companies that issue credit cards or make personal loans to individuals; businesses like Citigroup may provide a much wider array of services, including consumer banking, credit cards, and corporate and investment banking.
Finance companies help merchants by buying installment contracts, allowing them to offer instant credit without maintaining the loans themselves. Examples include Bank of America Merrill Lynch Dealer Financial Services and Ford Motor Credit Company. The focus of finance companies on the business sector means they are not directly issuing credit cards to consumers but instead facilitate the purchase of high-cost items by working with merchants.
It is important to understand the distinction between commercial finance companies and consumer financial services firms. While they both play crucial roles in the economy, their target customers and services provided differ significantly.