Auto and retail customers can get financing from in-house lenders at a captive finance company.
What is a captive leasing company? A captive leasing company is a special-purpose entity created by a parent company to finance the purchase of leased equipment. The parent company guarantees the lease payments and may also provide other forms of support to the leasing company. Captive leasing companies are often used to finance the purchase of expensive equipment, such as aircraft or vehicles.
What is captive company strategy?
A captive company is a wholly owned subsidiary of a parent company. The purpose of a captive company is to create a subsidiary that can be used to further the business goals of the parent company. There are many reasons why a company might choose to create a captive company, but the most common reason is to create a subsidiary that can be used to manage risk.
A captive company is often used to manage risk because it is easier for a parent company to control a wholly owned subsidiary than it is to control a company that is publicly traded. By creating a captive company, the parent company can have more control over the subsidiary and can better manage the risks associated with the subsidiary.
There are many benefits to a captive company strategy, but there are also some drawbacks. One of the biggest drawbacks is that a captive company can be very expensive to create and maintain. Additionally, a captive company can be difficult to exit if the parent company decides that it no longer wants to own the subsidiary.
What is PBC criteria?
PBC criteria refers to the specific guidelines that must be met in order to be eligible for public broadcasting funding. In order to receive this funding, an organization must be a non-profit, non-commercial entity that is legally licensed to operate as a public broadcaster. Additionally, the organization must be able to demonstrate that it is able to serve the public interest by providing programming that is educational, informative, and entertaining.
Can NBFC lend money? Yes, non-banking financial companies (NBFCs) are allowed to lend money. In fact, lending is the primary business activity of NBFCs. They are regulated by the Reserve Bank of India (RBI) and are subject to similar prudential norms as banks, with certain additional regulations.
What is captive funding?
Captive funding is a type of financial arrangement in which a company provides funding to another company in order to support that company's operations. The funding company is typically a subsidiary of the operating company, and the arrangement is typically structured as a loan. The purpose of captive funding is to allow the operating company to have access to capital that it would not otherwise have, and to provide the funding company with a source of income.
There are several advantages to captive funding arrangements. First, they can provide the operating company with access to capital that it would not otherwise have. Second, they can help the operating company to manage its cash flow by providing it with a source of funds that it can use to cover its expenses. Third, they can help the funding company to diversify its income stream.
There are also some disadvantages to captive funding arrangements. First, they can be expensive, since the funding company will typically charge interest on the loan. Second, they can be risky, since the operating company may default on the loan. Finally, they can create a conflict of interest between the funding company and the operating company, since the funding company may be tempted to make decisions that are in its own interest rather than in the best interest of the operating company.