Industrial loan companies overview: Industrial loan companies (ILCs) are subsidiaries of larger corporations whose main purpose is to facilitate sales of the parent companies' products by extending loans to customers. As a result, industrial loan companies function in a manner very similar to banks.
Some industrial loan companies have gone beyond financing purchases of their parent companies' products to becoming mortgage lenders and/or general consumer or business lenders.
Major industrial loan companies: Among the major industrial loan companies are:
Other examples of corporations with industrial loan compannies of their own include:
- Target
- UnitedHealth
- Harley-Davidson
Regulation of industrial loan companies: Regulation of industrial loan companies is currently not as stringent a regime as that imposed on banks. However, the Obama administration has proposed separating banking from other commercial activities, a move that may cause many to close or be sold.
