An intermediary refers to a person, organization, or entity that acts as a mediator or go-between in a particular transaction, process, or relationship. It plays a crucial role by facilitating communication, transactions, or interactions between two or more parties. The primary function of an intermediary is to bridge the gap between parties that may not otherwise have direct contact or access to each other.
In business contexts, intermediaries often operate in various industries, such as finance, real estate, marketing, or supply chain management. For instance, in the financial sector, intermediaries like brokers or investment banks act as intermediaries between buyers and sellers in the stock market, matching their demands and facilitating transactions. Similarly, in the real estate sector, real estate agents act as intermediaries between buyers and sellers, helping negotiate deals and finalizing transactions for a commission fee.
Intermediaries are commonly seen in international trade, acting as facilitators between importers and exporters, helping with logistics, customs clearance, and documentation. They may also provide added value services, such as financing, insurance, or market research.
Overall, intermediaries serve as essential links in the chain of various interactions, bringing parties together, minimizing risks, providing expertise, and ensuring smooth and efficient processes.
