Financial Landlord

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A Financial Landlord lets others use cash (or other financial assets) under certain (often time limited) conditions. There are two major subtypes of this business model:

  • Lenders provide cash that their customers can use for a limited time in return for a fee (usually called “interest”). Examples: Bank of America, Fannie Mae.
  • Insurers provide their customers financial reserves that the customers can use only if they experience losses. The fee for this service is usually called a “premium.” Examples: Aetna, Chubb