Lender
A person or institution that supplies money to a borrower under an agreement to be repaid.
Every lender faces default risk, so lenders prefer borrowers with low existing debt, solid income and savings, and a record of on-time repayment.
Often Confused With
- Creditor
- Lender and creditor describe the same role; creditor is the word the business statements use.
Taught In
See Also
3.2.A.3 · 3.2.B.1