Last Resort Lender

A Last Resort Lender is an institution or entity that provides funds to borrowers when no other lending options are available. This often occurs during times of financial distress or when potential borrowers have poor credit histories. Last Resort Lenders typically charge higher interest rates or impose stricter terms due to the increased risk they undertake. Examples include government agencies or specialized financial institutions that step in to support individuals or businesses facing urgent financial needs, ensuring they can access necessary funds even when traditional lenders refuse them.