What is In-House-Financing?

Answer 1

In-house financing refers to a financial arrangement where a company provides loans or credit directly to its customers to facilitate purchases of its products or services. This approach allows businesses to bypass traditional banks or financial institutions, enabling customers to pay in installments over time. It can enhance sales by making products more accessible, while also allowing the company to retain control over the financing process. However, it requires effective risk management to mitigate potential defaults.