A financier is a person or organization that lends money to fund an undertaking. This person or organization may provide money for several different reasons. Some financiers may lend money occasionally, while others make it a habit to provide funds to various endeavors. A financer might be a private individual, business, or institution.
A financer may agree to provide the funding to a customer for a conversion project. This will prevent the customer from having to pay the conversion facility directly. Often, the financer will provide the funding in installments based on the conversion price. These installments may be paid in the form of interest or principal, or they may be repaid through an increase in rent.
The terms and conditions of a conversion facility must include provisions for crediting the financer for previous installments. However, the financer may not actually own the aircraft. In this case, the financer may transfer the title of the aircraft to a third party that facilitates the repossession or sale of the converted aircraft.
