The function of the landowner complements the function of the capitalist. While the capitalist provides to an entrepreneur present money in a credit transaction for the purchase of factors of production from other entrepreneurs, the landowner provides to an entrepreneur present money in a credit transaction for the purchase of land from other entrepreneurs.
The landowner has obtained money, either in the form of wages, entrepreneurial profit, or interest. He has not used all of his money for consumption and hence added more to the market than he has withdrawn from it (savings).
He identifies entrepreneurs who are demanding present money in order to purchase land (from other entrepreneurs) in exchange for future money. He enters into a credit transaction with these entrepreneurs if the future money offered in exchange corresponds with his time preference.