Definition
Lender
A lender is an organisation or individual that provides money to borrowers under an agreement to be repaid, usually with interest. Banks, building societies, credit unions and specialist finance companies are all lenders.
Example
A high-street bank offering personal loans is a direct lender — you apply to them, and they make the lending decision.
Common misunderstandings
- A broker is not a lender — brokers find lenders on your behalf, but the loan comes from the lender.