Birgit Gläser Jan 15, 2019:

forgot to mention... There is also an alternative scenario where e.g. the manufacturer sponsors the loan interest to push sales. In that case the manufacturer pays the interest to the bank while the client pays zero interest and thus the dealer liekly gets no commission or possibly a fixed finders fee... that is why the interest-bearing agreements are explicitly mentioned.

Birgit Gläser Jan 15, 2019:

with Phil might be an agent contract or something where they get a commission on the interest from the contract. If the contract is prematurely cancelled and thus less interest is earned, the excess that was paid in commission for the full interest amount will be reclaimed.
Sounds like a normal incentive... if car dealers get their customers to take a car loan from e.g. the manufacturer's bank, the dealer often gets a small commission on the interest from the loan, which in this case is probably disbursed upon closure of the loan agreement. And while the client likely has to pay penalty interest for premature cancellation, the dealer will have to refund the excess commission.... common practice...

philgoddard Jan 14, 2019:

Could it be the same as Zinsstrom, interest flow?