What financial function do finance companies provide to consumers and businesses?

Finance companies primarily provide secured or unsecured loans to both consumers and businesses. These financial institutions specialize in lending activities and are designed to meet the credit needs of individuals and businesses without relying on traditional banking systems. Secured loans are backed by collateral, which reduces the risk for the lender, while unsecured loans are based on the borrower's creditworthiness and financial history.

This service is particularly crucial for consumers who may not qualify for traditional loans due to a lack of credit history or other financial constraints. For businesses, finance companies can offer financing solutions that facilitate capital access for operations, expansion, or other financial needs.

The other options refer to different financial services. Investment banking services focus on raising capital for companies and facilitating mergers and acquisitions. Equity financing involves raising money through the sale of company shares, which is not the primary service provided by finance companies. Public equity offerings are related to corporate finance where companies offer shares to the public, typically handled by investment banks rather than finance companies.