when dealing with customers a firm may try to keep the entire transaction in house for example in house financing is a common practice in certain industries this form of financing works by using the firm s resources to extend the customer s credit with the firm potentially benefiting from any associated interest payments in exchange for assuming the risk associated with default 
for a brokerage the firm may try to match a client s order with another customer creating an in house transaction this allows the firm to benefit from both the buy and sell side commissions and potentially lowering other administrative costs in house financing is a type of seller financing in which a firm extends customers a loan allowing them to purchase its goods or services in house financing eliminates the firm s reliance on the financial sector for providing the customer with funds to complete a transaction although cloud hosting is an inexpensive way to maintain an online presence in house hosting gives a company greater control over its online infrastructure advantages and disadvantages of in house operationsin house business operations can offer an additional revenue stream by offering services that the company s clients would otherwise find elsewhere auto companies frequently offer in house financing at higher rates than those available from banks or credit unions in addition conducting business operations in house gives a company greater control over the execution of these operations since it is the direct employer of the teams conducting those operations the main disadvantage of in house operations is the cost of maintaining an additional team that may be outside of the company s core business many companies outsource their payroll it or other technical work because the companies are too small to justify hiring full time staff for these roles in house services can provide some retailers with additional revenue streams companies have more control over in house teams than they would with a contractor in house operations can be more expensive and take resources away from the company s core business smaller companies might not have enough work to justify hiring full time in house staff 