indirect lending
[ɪnˈdɪrɛkt ˈlɛndɪŋ]
noun
empréstimo indireto
1. A lending arrangement where a financial institution provides funds through a third party or intermediary rather than directly to the borrower
The bank engaged in indirect lending by partnering with auto dealerships to finance vehicle purchases.
O banco realizou empréstimo indireto ao se associar com concessionárias de automóveis para financiar compras de veículos.
2. A credit extension process where the lender does not have a direct contractual relationship with the end borrower
Indirect lending through retailers allows consumers to obtain financing without visiting the bank directly.
O empréstimo indireto através de varejistas permite que os consumidores obtenham financiamento sem visitar o banco diretamente.
3. Lending that occurs when financial institutions fund loans that are originated and serviced by dealers, retailers, or brokers
The credit union's indirect lending program grew significantly through partnerships with furniture and appliance stores.
O programa de empréstimo indireto da cooperativa de crédito cresceu significativamente através de parcerias com lojas de móveis e eletrodomésticos.
In Brazil, indirect lending is a significant portion of consumer credit, particularly in auto and appliance financing. Banks often partner with dealerships and retailers to reach consumers more effectively. This practice is especially prevalent during economic expansions when dealers act as loan originators. In the USA, indirect lending is a major revenue stream for banks and credit unions, particularly in the automotive sector where dealership financing is the dominant distribution channel.
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