The lender receives the interest the borrower pays the interest and the broker gets a cut. It not all the hard to see that the Borrower (Shorter) will pay a higher interest rate then he or she will receive from the proceeds of the sale in whatever interest bearing account they park the money whilst holding the short position. The longer your short position is open the lower the share needs to go to profit.
CDU Price at posting:
$1.41 Sentiment: Buy Disclosure: Held