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What is a Lender? A lender is any institution or individual who loans a borrower money. There are a number of types of lending organizations, including educational, commercial, hard money, lenders of last resort, and mutual organizations.

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Lenders have a different kind of risk from business owners/shareholders. Lenders come before owners in terms of payments if the business can’t pay its bills or goes bankrupt. That means that you must pay lenders back before you and other owners receive any money in a bankruptcy.

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So, you’re buying a home and you need a mortgage. Congrats! But how do you choose the right lender who will offer the best deal and great customer service on the largest purchase of your life?

Entity that advances cash to a borrower for a stated period and for a fixed or variable rate of interest, with or without a security other than the borrower’s signatures. See also secured lender. Use ‘lender’ in a Sentence If you need a down payment on your home, you may contact a lender for the funds.