laengukandja

Laengukandja is an Estonian term that translates to "loan carrier" or "borrowing agent." It refers to a financial institution or individual that acts as an intermediary in the process of granting loans. Rather than originating the loan themselves, a laengukandja procures funds from other sources, such as banks, investors, or capital markets, and then lends these funds to a borrower.

The primary function of a laengukandja is to facilitate access to credit for individuals or businesses that may not be able to secure direct financing from traditional lenders. They often specialize in specific types of loans or cater to niche markets. The laengukandja assumes the risk of lending to the borrower, while also managing the relationship with the original funder. Their profit typically comes from the difference between the interest rate they pay to the funder and the interest rate they charge the borrower, along with any associated fees.

In essence, a laengukandja bridges the gap between those who have capital available for lending and those who need to borrow it, playing a crucial role in the broader financial ecosystem by enhancing liquidity and expanding credit availability. They are distinct from direct lenders who use their own balance sheet to fund loans.