A lender is an individual or institution that gives money to a borrower with the expectation of repayment, usually with interest, under agreed-upon terms.
For example, an equipment finance company acts as the lender when it provides $180,000 to a contractor to purchase a skid steer, expecting the borrower to repay the principal plus 8% interest in monthly installments over 4 years, with the equipment serving as security.
Why it matters: They hold the keys to growth capital; building a strong relationship with a lender can save a business during a cash flow crisis.
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