Borrower - Financial definition

In finance, a borrower is a party that accesses capital from a lender through various financial instruments such as loans, bonds, or credit facilities, typically for investment, operational, or personal purposes. Borrowers may range from individuals seeking mortgages to large corporations issuing bonds for expansion projects. The relationship between borrowers and lenders involves the negotiation of terms, including interest rates, repayment schedules, and collateral requirements, with the borrower assuming the responsibility to repay the borrowed funds according to the agreed-upon terms.