What is the primary function of finance companies? How do finance companies differ from commercial banks?

What is the primary function of finance companies?

The finance company's main function is to provide loans to businesses and individuals which they pay back with interest.

Finance companies differ from commercial banks in the following:

As opposed to commercial banks, financial banks are not subject to too many regulations and laws that restrict the products and services they offer. A finance company can offer a loan to someone who cannot get a loan from commercial banks may be due to his financial history due to the regulations put in place.

Banks offer deposits services but finance companies do not finance companies only offer loans to businesses through finance companies can offer some bank services such as retirement planning, home loans among others.