Finance Company: Types and Schemes

Finance Company: Types and Schemes

Financing holds an important role in supporting the growth of multiple business sectors. The existence of a finance company has become a choice for companies to receive funds they need especially when they do not have enough funds to sustain their business. In this article, we will comprehensively explain the definition, functions, types, and examples of financing companies in Indonesia.


A finance company is a financial institution focused on the provision of funds and financing for consumption and investment needs. This type of company is different from banks even though both work in the finance sector. Usually, finance companies do not receive money savings from the people like a bank. The focus of this institution is to give loans to individuals or companies with different schemes predetermined based on the borrower’s needs.

Commonly speaking, a finance company can help companies or individuals in fulfilling their funds more flexibly than a bank. Finance companies can provide different forms of loan schemes, ranging from consumer financing to infrastructure financing.

Read also: Syaria Financing, Usuryless Credit and Financing


A finance company has several important functions that can support economic growth and help the business sustainability of companies. Here are its functions:

1. Giving Protection from High Interest

One of the main functions of financing companies is the ability to give protection to borrowers from loans with high interest. Financing companies usually offer interests with a more competitive rate compared to other lender institutions such as loan sharks or illegal loan companies. Because of this reason, companies or individuals can access their newly received funds with more affordable interest, which in turn will make them more able to repay their loans.

2. Offering Easy Access to Loans

Financing companies usually have a faster and easier process to apply for loans compared to banks. Documents required to apply for a loan are also fewer and simpler. This helps companies or individuals receive their funds more quickly and punctually so that they can support the sustainability of their business operations faster.

3. Helping Business Growth

A finance company also takes the role of supporting business growth, especially by providing working capital. Companies can apply for working capital to expand their business operations, increase production, and develop their market. With the help of financing companies, companies can optimize their business growth potential.

4. Assisting Infrastructure Construction

For large-scale projects such as infrastructure construction, financing companies also hold a crucial role. Financing companies can offer funds in a large amount to support infrastructure projects that hold strategic value for national economic growth and societal welfare.


Financing companies can be categorized based on their types of business and services.

1. Infrastructure Financing Companies

Infrastructure financing companies or focused on the financing of infrastructure projects, such as the construction of highways, bridges, airports, and other large-scale infrastructure projects. This type of finance company provides funds in a large amount to support the construction of strategic infrastructure for national development.

2. Venture Capital Companies

Venture capital companies are a type of finance company that offers investment funds for new companies or startups with high growth potential. Other than offering funds, venture capital companies also provide strategic assistance and monitoring to optimize the growth of new startup businesses.

3. Financing Companies

This type of financing company offers different schemes of funding, such as consumer financing, car financing, and property financing. Financing companies have a role in consumers or companies in collecting the funds they need with flexible financing schemes.

Read also: Definition, Example and Benefits of Finance Company

Examples in Indonesia

In Indonesia, there are several examples of financing companies that operate and are registered under the auspices of the Financial Services Authority (OJK). Here are the examples and services they offer.

1. Registered Leasing Companies in OJK

In Indonesia, there are several examples of financing companies that operate and are registered under the auspices of the Financial Services Authority (OJK). Here are the examples and services This company is a type of finance company that offers financing surfaces for the financing of vehicles, heavy machinery, and others. This type of company is under the monitoring of OJK to ensure the sustainability and security of financial transactions.

a. Adira Finance

Adira Finance is one of the largest leasing companies in Indonesia that offers financing for vehicles, either for personal or commercial uses.

b. Otto Summit

Otto Summit is a leasing company focused on the financing of heavy machinery and industrial machines.

c. BA Finance

BA Finance is a leasing company that provides many financing services, such as consumer financing and financing for heavy machinery.

d. Amanah Finance

Amanah Finance is a listing company focused on consumer financing, especially financing the purchase of cars and motorcycles.

2. Examples of Factoring Companies

A factoring company is a type of finance company that focuses on the purchase of accounts receivable from companies or individuals to provide quick access to cash funds. In the process, factoring companies will provide the payment in the form of several cash funds to the debt owner with certain discounts or interest.

a. SG Finance

SG Finance is a type of factoring company focused on the financing of micro, small, and medium enterprises (MSMEs) to ensure that their business can take off.

b. Aditama Finance

Aditama Finance is a factoring company that is also focused on the financing of MSMEs to ensure that these businesses have enough funds to start their business.

c. PT IFS Capital Indonesia

PT IFS Capital Indonesia is focused on offering financing for working capital and business expansion needs.

3. Examples of Consumer Financing Companies

A consumer financing company is a type of company focused on providing funds for consumers or individuals to fulfill primary needs such as personal or household consumptions. This type of company offers several types of financing, such as financing for electronic devices, cars, jewelry, furniture, and other consumer goods.

a. PT Adira Quantum Multifinance

PT Adira Quantum Multifinance offers several services for consumer financing, such as financing to purchase electronic devices, furniture, and jewelry.

4. Examples of Credit Card Issuing Companies

A credit card issuing company is a type of financial institution or bank authorized in issuing credit cards for their customers. A credit card is a payment facility that gives the ability for its holder to purchase and do transactions without using cash directly.

a. Bank Mandiri

Bank Mandiri is one of the largest banks in Indonesia that issues credit cards with several choices of services and features.

b. Bank BCA

Bank BCA can also issue popular credit cards with interesting reward programs for its customers.

c. CIMB Niaga

CIMB Niaga is a bank that provides credit cards with interesting promotion programs and the ease of transaction anywhere and at any time.

5. Examples of Venture Capital Companies

A venture capital company is a type of financial institution that provides financing or investment to new companies or startups with high growth potential. The purpose of a venture capital company is to support the growth and development of new startup businesses by providing funds, strategic assistance, and managerial support as well as monitoring.

a. Fenox Venture Capital

Fenox Venture Capital is a global venture capital company that invests in startups and tech companies with global growth potential.

b. CyberAgent Venture

CyberAgent Venture is a venture capital company from Japan that actively invests in tech companies in Indonesia.

6. Examples of Infrastructure Financing Companies

True to its namesake, an infrastructure financing company is a type of financial or financing institution focused on providing funds for infrastructure projects. These projects can include the construction of highways, bridges, airports, harbors, power stations, and other strategic infrastructure for the development of an area or country.

a. PT Sarana Multi Infrastruktur

PT Sarana Multi Infrastruktur is a financing company that holds the role of supporting the construction of important infrastructure in Indonesia, such as the construction of highways and other similar projects.

Understanding the concept of a finance company can be an important key to facing different financial needs. By relying on the ID Multifinance Core Systems CONFINS service from AdIns, a company can optimize its business potential and receive solutions for business development suitable to what they need at that time.

The use of an integrated system from AdIns can help companies in managing their financing more efficiently, increase their access to funds, and support their sustainable business growth.

In an increasingly competitive market, using technology and the best services such as asking for help from a finance company is the go-to solution for achieving business success. Visit AdIns’ official website or contact us through WhatsApp right now and start implementing the CONFINS solution for your business success right now!

finance company, Finance Company: Types and Schemes, Advance Innovations

Author :

Ad Ins

Published date :

14 August 2023