Glossary of Terms

Print Friendly, PDF & Email

Captive Finance Company

A subsidiary financial institution whose primary or sole operation is the provision of credit for customers of the parent company. For example, a captive finance company owned by an auto manufacturer may make loans to consumers who want to purchase an automobile. Captive finance companies have historically been prominent in the automotive industry, leasing the purchase of cars from whichever company owns them. Captive finance companies are typically wholly owned subsidiaries. (Courtesy

« Back