What context can I use each word in?
Learn when and how to use these words with these examples!
noteholder
Example
The bank is the noteholder for my mortgage. [noteholder: noun]
Example
The noteholder can sell their debt instrument to another investor. [noteholder: noun]
Example
As the noteholder, I have the right to collect interest on the loan. [noteholder: noun]
lender
Example
The bank is my lender for the car loan. [lender: noun]
Example
I borrowed money from a private lender to start my business. [lender: noun]
Example
The lender requires a credit check before approving the loan. [lender: noun]
Good things to know
Which word is more common?
Lender is more commonly used than noteholder in everyday language. Lender is a more versatile term that covers a wide range of lending activities, while noteholder is a more specific term that refers to a holder of a debt instrument.
What’s the difference in the tone of formality between noteholder and lender?
Both noteholder and lender are formal terms used in financial contexts. However, lender is more versatile and can be used in both formal and informal contexts, while noteholder is typically used in formal contexts.
