Читать книгу Corporate Finance For Dummies - Michael Taillard - Страница 37

Did you know that corporations can get credit cards and credit loans just as you can? Well, they can, and those credit loans come from a type of financing institution called a business credit institution. Business credit loans differ from standard business loans in that they’re a running line of credit in the same way that your credit card is a running line of credit. These loans can be freely increased or gradually paid off within certain limits as long as the corporation makes periodic minimum payments on the balance.

A special type of business credit institution, called a captive financing company, is a company that’s owned by another organization and that handles the financing and credit only for that organization rather than for any applicants. For example, GMAC, the financing arm of General Motors, which changed its name to Ally Bank, is the captive credit financing company for the corporation General Motors.