Aircraft Financing Process

Factors that Affect Your Aircraft Financing Loan Terms

 

 

GENERAL

  • Corporate borrower or high net worth individual
  • Income, net worth, contingent liabilities
  • Industry
  • Geography

 

 

AIRCRAFT USAGE

  • How you will use your airplane (personal, business, or charter)
  • Annual flight hours
  • If the aircraft will have higher than average usage due to charter (Part 135) the loan is structured to factor the faster depreciation. You may be presented with a shorter loan amortization and a higher down payment
  • Most Financial institutions will not fund an aircraft intended for all Part 135 usage
  • Many Lenders will require the aircraft to be on an engine maintenance program

 

 

AGE, MAKE, AND MODEL

  • Generally, the older an airplane, the fewer the financing options. Aircraft age will affect your loan amount, term, rate and amortization
  • Aircraft on experimental certificate require a specialty lender

 

 

DOWN PAYMENT

  • A down payment ranging from 10 percent to 25 percent is typically required. The down payment will affect the interest rate, payment and amortization schedule

 

 

CREDIT APPROVAL PROCESS INFORMATION REQUIRED

Preliminary review:

  • Borrower
  • Address
  • Guarantors
  • Address
  • Aircraft Purchase Price
  • Requested Finance Amount
  • Aircraft Domicile
  • Part 91 or Part 135 Operation
  • Estimated Flight Hours
  • Previously Owned Aircraft
  • Aircraft Specifications Sheet and CAMP (CMP) Maintenance Reports

 

 

Financials For Individual Borrowers:

  • Current personal financial statement (no older than six months), signed and dated
  • Last three years' personal tax returns, including k-1s
  • Bank and brokerage statements that verify liquid assets (cash and marketable securities)

 

 

Financials For Corporate Borrowers:

  • Last three years' financial statements
  • Current interim financial statement for the most recent period available

 

 

AIRCRAFT LOAN CALCULATOR

This loan calculator will help you determine the monthly payments on a loan. Simply enter the loan amount, term and interest rate in the fields below and click calculate.

RESULTS:

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Monthly Payments