There are many different companies offering personal and business finance products plus investment management options.
All have their upsides and downsides. To help you decide which are the best companies or retail banking to get your finances from, we have put together this buyer’s guide to the top finance companies in the UK in regards to their wealth management, net income, and financial services they offer.
What is a Finance Company?
A finance company is a type of lender that provides financial services to individuals or businesses.
Common services offered
Investment management services
The most common type of financial services provided by a finance company is for the purchase of automobiles and other vehicles.
Still, many companies also offer financial services for boats, ATVs and other recreational vehicles.
Finance companies may also be referred to as “investment management companies” or “lenders.”
The type of financing offered by the top finance companies varies widely. Some finance companies offer instalment loans with fixed interest rates over set periods, while others offer more flexible plans based on the borrower’s creditworthiness and some offer asset management.
Some finance companies offer loans that are secured by collateral, such as real estate or personal property, while others provide unsecured loans where no collateral is required.
Many finance companies will also provide other financial services, such as refinancing options, debt consolidation services, investment services, and wealth management options.
Main Types of Financial Institutions
Banks are regulated by federal laws, while credit unions are regulated by state laws and operate under their charters granted by their states’ legislatures.
The famous Lloyds Banking Group, which is considered to be among the largest financial services companies in the UK offers various financial services and asset management to its clients.
If you also look into Royal bank, you will also see they offer diverse products for asset management and investment services based on the total assets you have.
Royal bank was formed back in 1695 to provide clients with various financial services and investment banking options.
How Do Finance Companies Make Money?
There are several ways finance companies make money, from investment banking and financial services to even offering asset management options to some clients.
Which has lead several big names to grow drastically in the United Kingdom, banks like Royal Bank of Scotland, HSBC Holdings, Lloyds Banking Group, Standard Chartered, and Barclays PLC, just to name a few.
Below is a detailed discussion of how the largest banks make money.
Finance companies make money by collecting interest on loans they’ve made to consumers or businesses.
The rates vary depending on the type of loan and the borrower’s credit history, but as a rule of thumb, a finance company makes more money if it can charge higher interest rates which add to their rank company industry revenue (USD millions).
Credit cards are an example of a high-interest product; auto loans tend to have lower rates than other types of consumer debt.
Fees for late payments and other services
Finance companies also make money by charging fees for their products and services.
For example, when you use a check card to buy items from retailers, the merchant pays a fee (usually around 1%) to the card issuer for processing that transaction through its system; that fee then gets passed along to you in the form of higher prices on merchandise or services purchased with your card.
In addition to making loans, finance companies also collect debts from people who are behind in paying their bills. They do this by calling, writing letters or even going to homes and businesses headquarters to ask for payment.
If you’re behind in your expenses, you’ll likely receive several letters from your lender demanding payment.
The lender may also turn over your account to an outside debt collection agency that will continue to harass you until you pay them what you owe them.
Some people end up turning over their accounts to these agencies because they think that if they don’t pay up, the creditor will pursue legal action against them — but this is not true. A creditor cannot sue you simply because you have fallen behind on your payments.
Finance companies charge account holders monthly fees for maintaining their accounts in the investment bank.
These fees often vary based on the amount of money held in the account, but they are generally reasonably low compared to what banks charge for similar services.
Finance companies can make money from trading commissions because they charge a fee for every transaction that takes place on their platform.
This means that if you buy shares in a general group PLC, the finance company will charge you a percentage of the price you paid for those shares, this is added back to their annual revenue. The same applies if you sell your shares back to them later on.
Trading commissions are usually a small amount — often between 0.1% and 0.5% of the total value of the transaction.
This may seem like a small amount at first glance, but if you trade frequently, it can quickly add up!
Finance Companies to Avoid
You’d think it would be easy to find a suitable finance company. After all, there are thousands of them out there. But some of them may not be as good as they seem.
Many people don’t look into the background of their finance companies. They simply take out loans from whoever offers them low-interest rates and good terms.
This can often lead to problems later down the road when those same people are unable to make their payments or get behind on their accounts because their finance company made it difficult for them to do so.
Interest rates that seem too good to be true
If a finance company offers you an interest rate that seems too low compared to others, it may be because they’re charging you higher fees for other services like insurance or additional credit cards or loans, which will offset any savings on interest rates.
Or they may not have the best reputation in town, meaning they have to offer better terms to attract customers and make their profits back, even if they’re not making much money on those accounts in the first place.
The more you pay, the less money you’ll have in your pocket at the end of the day. Look for a company with no hidden fees or charges, and that doesn’t charge an annual fee on top of its other fees.
Even if it isn’t listed in their terms and conditions, some companies will still try to sneak in hidden charges—like overdraft fees. Be sure to read everything before signing up so that nothing is added later down the road.
Poor customer service
You don’t want to work with a company that doesn’t have good customer service; they must be willing to help when you need them most.
A great way to find out if this is true is by reading reviews from other customers who have already used their services before making any final decisions about which finance company you want to work with next time.
Full List Of Finance Companies
Here is a list of All Finance Services in the UK.
- Best Annuity Companies
- Best Bankruptcy Companies
- Best Business Loan Comparison Companies
- Best Company Administration Companies
- Best Company Dissolution Companies
- Best CVA Companies
- Best CVL Companies
- Best DAS Companies
- Best Full and Final Companies
- Best Insolvency Practitioners
- Best Invoice Factoring Companies
- Best IVA Companies UK
- Best MVL Companies
- Best No Win No Fee Will Contesting Companies
- Best Partnership Administration Companies
- Best Partnership Liquidation Companies
- Best Partnership Voluntary Arrangement Companies
- Best Pre Pack Administration Companies
- Best Sequestration Companies
- Best Tax Advisor Accountants
- Best Trust Deed Companies
- Best UK Loan Companies
- Best Will Writing Companies
- Debt Collectors
- Debt Consolidation Companies
- Debt Help Charities
- Debt Relief Order Companies
- DMP Companies
- Full List Of Debt Companies
- Who Called Me
We want to review and grade every single financial company or service in the UK.
So we want to be able to make sure our readers get all the information they need to make the best choices.