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Why might a person choose to borrow money from a finance company that charges higher interest rates than commercial banks do?
Wiki User
∙ 13y ago
it is because people can get money from the finance companies easily than the commercial banks.. now a days commercial banks asking more documents, surety,etc, than the finance companies or money lenders.. recently i visited a man doing his business in platform.. he is a B.Com graduate, selling second hand books.. i asked him to approach banks for loan and start some other business. now his age will be in forties.. he said, he approached the banks many times got vexed, and went to local money lender...
why this situation? let the bankers think!!
Wiki User
∙ 13y ago
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Can a company that is not a finance company charge interest and finance charges to someone it has lent money?
Yes.
What is finance cost?
Finance cost is the interest charges paid by company to borrow money from open market or debt collected from external sources and also any money spent to get finance for company is also included in finance cost.
How do you get a finance company to finance your customers?
some are asking for their friend to invest with their company with interest.
How long after a missed car payment does the finance company repossess the vehicle?
The question is, "Why would you worry about a missed payment when you have interest in the vehicle?" The money that you used as your down payment and any payments you have made total your interest in the vehicle. Why are people running from the repo man when in fact you can place the finance company on notice that, if your interest is repossessed, you will file criminal charges in federal court against the finance company and get triple what the car is worth. I guarantee you they won't take it. You can also put a mechanics lien on the vehicle to protect your interest in it.
The amount of interest a store charges a customer for buying on the installment plan?
Finance charge
Can a interest be charged on a late fee?
No. But what will be charged on a late fee, will be reflected on something known as your your finance charges. Finance charges will go up if you are late making a payment on your credit card.
How do you access AR Finance charges on a Past Due Balance?
Accruing Finance ChargesExample: Invoice = $1000Due Date = 01-OCT-10Interest Rate = 1%Days in Period = 30Accrue Interest = YesYou run the statements or dunning program to calculate finance charges on 31-OCT-10 and get the following results:.01 * $1000 * 30 = $1030As of 31-OCT-10 you have: $10 finance charges (02-OCT to 31-OCT)$1000 invoice$1010*Since you are accruing finance charges, the amount of the finance charge is added to the amount due balance.Compounding Finance ChargesLets you compound the interest that you charge for past due items. If you compound interest, Receivables includes the finance charges that you have previously assessed when calculating finance charges on the outstanding balances of past due items. Use the following example to understand how Receivables compounds interest:Example:Invoice = $1000Due Date = 01-OCT-10Interest Rate = 1%Days in Period = 30Accrue Interest = YesCompound Interest = YesYou run the statements or dunning program to calculate finance charges on 31-OCT-10 and get the following results:.01/30 * $1000 * 30 = $10As of 31-OCT-10 you have:$10 finance charges (02-OCT to 31-OCT)$1000 invoice$1010You run the print statements or dunning letter generate program again on 30-NOV-10 and get the following results:.01/30 * $1010 * 30 = $10.10 finance charges* Since you are compounding finance charges, interest from 01-NOV to 30-NOV is calculated on $1100 i.e. the balance including any previous finance charges.As of 31-OCT-10 you have:$10 finance charges (02-OCT to 31-OCT)$10.10 finance charges (01-NOV to 30-NOV)$1000 invoice$1020.10Note: If Compound Interest had been set to No, finance charges would have been calculated on 1,000 only. If accrue interest had been set to No, then again finance charges would have been calculated on 1,000.
What is the interest rate on A 2016 jeep wrangler rubicon?
Whatever the finance company charges, based on a number of factors, the most important pertaining directly to you... income, credit history, etc.
If you close a credit card containing a balance in an attempt to pay it off faster how does this affect your finance charges?
It won't. The finance/interest charges will still be applied to the balance in accordance with the original lending agreement.
What is the amount of interest on a cash advance from a credit card of 2000 dollars at 27 per cent a month?
Finance charges will be approximately $44 on $2000 at 27% depending on how your bank computes finance charges.
Can the finance company still charge finance charges after repossession?
After a repo the loan holder will sell the vehicle at auction and any amount you owe less the sale price is your responsibility. Interest on that amount is usually negotiatable and will be waived if you pay any shortage.
What is the meaning of finance charges IPP?
Finance charges-ipp
