I’m on meigs and was looking at aircraft to purchase for future use and noticed a particular cargo airline is already worth over $120million, however has a AA rating, and it’s extremely fishy. Is there an error with the loan system where one can just keep getting more and more if they use that money to purchase aircraft instead of lease them?
What so fishy about being able to get more loans after some investment in equipment? Yes, bought equipment help you to rise loan limit, but it doesn’t do so directly, but as derivative, This means if I take 10 mil. loan and bought a 10mil. plane with it I won’t get my loan limit raised by 10 mil. immediately, I would be offered something between 1 and 5 mil. additionally, depending on my current rating and overall equipment value. And interest rate goes higher with every loan taken.
P.S. If you had in thought my Squirrel Wings company you certainly checked at the wrong time, sometimes it’s financial rating can go as low as A or BBB, although not for long.