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A lender gives money to a borrower with the agreement that it will be paid back within a certain time.

While people often think of lenders as banks, many other types of lending organizations exist including:

  • Payday lenders
  • Leasing companies
  • Trust companies
  • Credit card companies
  • Home equity banks
  • Private equity firms
  • Development banks
  • Family trusts
  • Provincial agencies
  • Municipal agencies
  • Retailers
  • Utility companies
  • Equipment companies
  • Auto companies
  • Trade vendors/suppliers
  • Individuals

A lender must always be repaid for a loan. If payments are not made as agreed, the lender can use the legal system to recover its money.