Borrower

A borrower is an individual or company that borrows money from a lender. This means that there are always at least two parties in a loan relationship: a borrower and a lender - one who borrows money and one who lends it.

Both lender and borrower can be companies or private individuals, but in Denmark, the lender is often a bank, mortgage bank or other lending company.

The same is true in a customer and supplier relationship, where the parties are often legally referred to as debtor and creditor.

The typical borrower

In Denmark, almost everyone becomes a borrower at some point in their life - for example, when a private individual buys a home, finances a car or takes out a consumer loan. Companies can also become borrowers when they need to finance a new machine, building or growth.

Many Danes are becoming borrowers, partly because we have a good and well-developed banking and mortgage institution environment that gives more people the opportunity to own a home. This is in contrast to Germany, where many people rent rather than own, and the same trend is seen in several European cities, where it is often cheaper to rent.

Three tips for you as a borrower

If you borrow money from a bank or mortgage company, you are usually well protected by the laws governing financial institutions. Documentation and terms are often clear and well documented for both borrower and lender.

Unfortunately, the same does not always apply to loans between two companies, two individuals or between individuals and companies - i.e. loans outside of banks and financial institutions.

Som inkassofirma ser vi ofte, at mange glemmer at dokumentere lån ordentligt, hvilket kan få store konsekvenser for både låntager og långiver.

Here are three tips for you as a borrower: