Final answer:
Finance companies primarily provide loans to individuals and businesses, offering access to credit for those who may not qualify for traditional bank loans.
Step-by-step explanation:
Finance companies have the primary function of providing loans to consumers and businesses. They specialize in lending money directly to individuals for various purposes, such as purchasing cars or financing home improvements. Finance companies also purchase installment contracts from merchants who sell goods on credit, allowing the merchants to receive the full payment upfront while the finance company collects installment payments from the customers.
Additionally, finance companies may offer other financial services such as leasing, factoring, and providing lines of credit. These organizations play an important role in the economy by providing access to credit for individuals and businesses who may not qualify for traditional bank loans.
Some examples of finance companies include Bank of America Merrill Lynch Dealer Financial Services, Chase Auto Finance, and Ford Motor Credit Company.