A lender is a person, organization (public or private), or finance company that lends money to a person or business in exchange for repayment of the loan. The payback includes any costs or interest.
A flat sum or installments, similar to a monthly mortgage payment, may be used as the method of repayment. A mortgage is one of the biggest loans that people obtain from lenders.
For several purposes, including a home mortgage, a car loan, or a small company loan, lenders offer money. The conditions of the loan specify the terms of repayment, including the due date, the penalties for late payments, and the consequences of default. A lender may work with a collection company to get any overdue money back.