When it comes to equipment financing we know that industries such as the service industry and others need this kind of investment to equip their businesses with the right equipment for the job in hand. What you may not realize however is that even huge companies with massive equipment requirements also rely on financing to get their businesses moving. For example aircraft financing exists to loan millions of dollars to companies which need planes in their fleet. These are highly expensive vehicles and here are just some of the kind of businesses which depend on specific funding in order to secure their aircrafts.
When you go to somewhere like the Grand Canyon and see options to fly over it in a small bi-plane, it is likely that these companies used equipment financing to secure those planes when they launched. This is the same for so many tour companies across the world, they rely heavily on this sort of initial funding in order for them to launch their business. Airlines are often backed by huge investors, which offer a range of funds for them to use for planes and other areas of the business. Small tour companies however, they will lend solely for the purchase of the planes, from equipment financing companies.
Jumping out of a plane with nothing to rely on except a parachute is big business and those companies need trained experts, plenty of safety equipment and of course, aircraft. These companies are highly profitable but in the first instance they depend on cash pumped into the business which can help them to successfully launch and put themselves in a position to make money. This is why they will often rely on equipment financing companies to enable them to make the initial purchase of the planes. Usually these companies make that money back in no time at all, but they still require that initial investment for the vehicles which they will use to take people to the skies.
When people first learn how to fly planes they do not simply jump into a big 747 and learn from there, they will always start with a smaller, less powerful plane. Those schools which offer pilot training have to have high quality aircraft and they also have to have as many aircraft as possible in order to make the business as profitable as can be. This is why they will use equipment financing which enables them to invest in higher quality planes and additional planes which they will be able to use for their students. Much like the other options on this list, these are profitable companies but they first need to have the infrastructure in place in order to make that profit. This is where aircraft financing comes in, which can certainly help these businesses to launch themselves to success in the way that they know they can.
These are just some examples of companies which rely on equipment financing for aircraft.