The lenders get first claim on the airline's assets, ahead of other creditors.
The lenders, meanwhile, get access to applicants who meet their standards.
In that case the lender gets the property and can sell it to recoup their investment.
And what do the lenders get in return, aside from negative cash flow?
When the Fed cuts rates ahead of the bond market, as was typical in past decades, both borrowers and lenders get a big break.
"If the person can't make the higher payments, the lender files for foreclosure and can get title to the house."
If existing lenders or trainers are getting it wrong, why don't new firms come in and do a better job?
But if a bank has to lend more money to a community group, maybe the lender won't ever get its money out of the deal.
If the peasant defaults, then the lender gets the woman.
They put virtually no money down but promised that if things worked out, the lenders would get a slice of the profits.