Economics of Money Banking and Financial Markets Business Sc

Economics of Money, Banking and Financial Markets, Business School 3rd edition Chapter 13. Nonbank Finance

Please

List and explain in detail 4 types of nonbank financing

Solution

Following is the list of Nonbank financing along with explanation:

Asset Finance: Such financing companies main business is to provide finances for purchase of assets like machines ,automobiles , generator, etc.

Investment Company : The main business of these companies is to deal with securities.

Loan Companies : The main business of such companies is to provide loans not for assets but for other purposes such as working capital requirement,etc.

Infrastructure debt fund : The main purpose is to infuse funds in infrastructure sector. The IDF could be set as trust or company.