FINANCIAL SERVICES COMPANY PRODUCTS
Financial Literacy to Enhance Financial Education
 

General Definition

1. Financing Company is a business entity that engages in financing activities for goods and/or services.

2. Debtor is a business entity or an individual who receives financing for goods and/or services from a Financing Company.

3. Types of financing for the procurement of goods and services include:

   1. Financing for Productive purposes

      • Investment Financing;

      • Working Capital Financing;

      • Other financing is in the form of operating leases and/or fee-based activities as long as it does not conflict with the provisions of laws and regulations in the financial services sector.

   2. Financing for Consumptive purposes

      • Multipurpose Financing

      • Other financing in the form of fee-based activities as long as it does not conflict with the provisions of laws and regulations in the financial services sector.
         

Role and Function

1. Financing Companies have a very important role & function in supporting the national economy, namely as an alternative source of financing for the community in terms of meeting capital needs and or to purchase goods (assets).

2. Financing institutions have a role where business actors and the general public expect these institutions to overcome vital problems, namely financial and capital problems.

3. Various financial services products from finance companies have been widely utilized by the public in Indonesia such as: to help provide capital goods through investment financing products (Finance Lease, Sale & Lease Back and Installment Payment), to help smooth working capital through factoring products and business capital facilities and to assist the ownership of motor vehicles, property or other goods through multipurpose financing products.