Often the entry needing capital is a business (and specifically a corporation); but it is easy to visualize the demander of capital being a home purchaser, a small business, or a government unit. For example, if your uncle lends you money to fund a new business, a direct transfer of funds will occur. Alternatively, if you borrow money to purchase a home, you will probably raise the funds through a financial intermediary such as your local commercial bank or mortgage banker. That banker could sell your mortgage to an investment bank, which then might use it collateral for a bond that is purchased by a pension fund.