What is Lender:
The term lender refers to that natural or legal person who lends or facilitates an amount of money to another.
The lender provides money to the borrower, that is, to the debtor, under the commitment that it will be returned in a certain time, therefore, the lender must charge an interest in order to offset the risk of loss of that given amount.
The percentage of interest on the loan will depend on the level of risk, the bad debt factor and the guarantees provided by the borrower, so that the lender, in the worst case, if the debtor does not meet the commitment to pay , you do not lose the full amount of the borrowed money.
Types of Lenders
There are several types of lender, the natural person, the legal entity, among others, to which people or companies can go when they need money at a particular time.
Natural or private person
It is the person who makes the loan considering in advance that he assumes a high risk of bad debts, for this reason, the interest calculated on the amount of money to be lent is usually higher than in a commercial entity.
On the other hand, this model of lender is more and more requested every day because it is an alternative that implies fewer requirements to be met by the borrower, and many people even dedicate themselves exclusively to this activity given the profits they receive.
However, as these people generally do not abide by established regulations, they often engage in unorthodox collection methods or that harm the borrower, therefore, being a lender is sometimes frowned upon, and can even be a derogatory term. .
Consequently, there are many people who consider that lenders, especially those who act incorrectly, are also considered lazy, that is, they are considered people who work little or do not like to work, but who are supported by the trade of be lenders.
For this reason, on many occasions, lenders are also known as usurers or speculators, although not all act in the wrong way, since there are also honest lenders who comply with the terms of their agreements.
It is the bank or commercial entity or institution that offers among its products and services, the loan of money through different plans or credits, both for natural persons and for companies or businesses.
These institutions are governed by a legal framework established by the governments, as far as finance and economy are concerned, therefore the interest rates that apply on loans are less high than those of a particular lender.
However, for a loan to be approved or not, the first thing that is done in these institutions is to evaluate the level of risk of said request based on a series of analyzes carried out according to the credit history of the person or company. What, on the contrary, a natural lender does not do.