Lending (also known as "financing") occurs when someone allows another person to borrow something. Money, property, or another asset is given by the lender to the borrower, with the expectation that the borrower will either return the asset or repay the lender. In other words, the lender gives a loan, which creates a debt that the borrower must settle. In terms of business and finance, lending often occurs in the context of taking out a loan. A lender gives a loan to an entity, which is then expected to repay their debt. Lending can also involve property or another asset, which is eventually returned or paid for in its entirety.
In modern society, lending occurs whenever someone swipes a credit card to buy a cup of coffee, takes out a mortgage to buy a home, or uses student loans to attend a university.
Created: 2023-09-16 Tags: #fleeting Link: Lending: What Is It? (thebalancemoney.com)
