{"ok":true,"canonical_url":"https://www.capbench.com/glossary/finance-company","api_url":"https://www.capbench.com/api/public/glossary/finance-company","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-17","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","CapBench lender and franchise enrichment"],"term":{"slug":"finance-company","term":"Finance company","group":"People and paperwork","definition":"An institution that provides loans or financing, often specializing in specific types of credit or industries, distinct from traditional banks.","what_it_means":"While SBA loans are typically processed by banks, some specialized finance companies might offer other forms of financing alongside your SBA loan, such as equipment financing or lines of credit. Be aware of their terms, as they often have different fee structures and interest rates than banks.","url":"https://www.capbench.com/glossary/finance-company","official_sources":[],"related":[{"slug":"lender-closing-costs","term":"Lender closing costs","url":"https://www.capbench.com/glossary/lender-closing-costs"},{"slug":"conventional-loan","term":"Conventional loan","url":"https://www.capbench.com/glossary/conventional-loan"},{"slug":"line-of-credit","term":"Line of credit","url":"https://www.capbench.com/glossary/line-of-credit"}],"related_questions":[{"question":"Are business life insurance premiums generally tax deductible for the company?","url":"https://www.capbench.com/sba-7a/questions/are-business-life-insurance-premiums-generally-tax-deductible-for-the-company"},{"question":"Can an SBA 7(a) loan help me acquire another company?","url":"https://www.capbench.com/sba-7a/questions/can-an-sba-7-a-loan-help-me-acquire-another-company"},{"question":"What distinguishes a company redemption from a cross-purchase buyout for SBA?","url":"https://www.capbench.com/sba-7a/questions/what-distinguishes-a-company-redemption-from-a-cross-purchase-buyout-for-sba"},{"question":"Does my business need to be a for-profit company to qualify?","url":"https://www.capbench.com/sba-7a/questions/does-my-business-need-to-be-a-for-profit-company-to-qualify"},{"question":"Can the company itself redeem the departing partner's shares with an SBA loan?","url":"https://www.capbench.com/sba-7a/questions/can-the-company-itself-redeem-the-departing-partner-s-shares-with-an-sba-loan"},{"question":"What happens if my business real estate is owned separately from my operating company?","url":"https://www.capbench.com/sba-7a/questions/what-happens-if-my-business-real-estate-is-owned-separately-from-my-operating-company"}]},"caveats":["Definitions represent CapBench's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"CapBench Glossary — Finance company","url":"https://www.capbench.com/glossary/finance-company","source_type":"CapBench Data"}}