Aircraft Financing Myths Debunked by The Aircraft Lenders

Whether you want to acquire an aircraft for personal or business use, aircraft financing can facilitate a bigger budget for your aircraft purchase and can free up your capital for other purposes. Financing an aircraft doesn’t have to be difficult. Working with an experienced aviation financing broker such as The Aircraft Lenders can help streamline the process and help get you in the air faster, at competitive rates and terms. Don’t let myths about the difficulty of financing an aircraft stop you from moving forward. The Aircraft Lenders is standing by to help you. Below, we debunk a number of myths about the process.

Myth 1: Financing an Aircraft is a Daunting Task

Securing finance for your aircraft is not as intimidating as it may seem. Many airplane financing options are available, ranging from standard term loans to leasing. The process is similar to applying for a mortgage, so you will need to supply Tax Returns and bank statements, but once you have pulled your financial package together, The Aircraft Lenders will do most of the work for you. Pre-underwriting your loan application is one of our most valuable services, as it allows us to match your financial profile to the lender that will offer you the best rates and terms in light of your credit score, cash flow, and liquidity. Once you are approved, The Aircraft Lenders will coordinate with all parties throughout the closing process, ensuring a smooth closing, to get you in the air as soon as possible.

Myth 2: High Interest Rates Are the Norm

One common misconception is that airplane financing rates are outrageously high. But this is not usually the case. While rates for aircraft loans are higher than those offered for auto loans, they are fairly similar to mortgage rates, and they also offer terms and amortizations u to 20 years long. The Aircraft Lenders works on their customers behalf to secure the best rates and terms for the aircraft, mission, and the borrower’s financial profile.

Myth 3: The Aircraft Leasing and Lending Industry is Inaccessible

With aircraft loans as small as $25,000 available, there are financing options for everyone, not just buyers of corporate jets. Connecting with reputable aircraft financing brokers like The Aircraft Lenders is a great first step to help you understand the best options that may be available to you. The Aircraft Lenders aim to make aircraft loans and leases accessible, offering flexible terms that cater to a variety of needs, including those of individual buyers, small companies, large corporations, and even businesses that use aircraft to generate revenue such as fire-fighting companies or charter operators.

Myth 4: Limited Options for Aircraft Loan Financing

Another mistake is to believe that options for aircraft loan financing are limited. This thinking might stem from the perceived complexity of the finance industry, but the truth is that there is a wide range of solutions designed to suit an assortment of circumstances. No matter what your financing needs are, companies like The Aircraft Lenders exist to help you secure an aircraft loan that suits your requirements.

Myth 5: Aircraft More than 20 Years Old Can’t Be Financed

This is simply not true! While some lenders do draw the line at 20 years old, there are many lenders that don’t. In fact, it’s possible to finance piston aircraft as old as 1940s or 1950s. For turboprops or jets, there are lenders that will go as old as 1975. The Aircraft Lenders knows the best lenders for most aircraft you might consider, even if they are much older than 20 years old.

Frequently Asked Questions

How can I finance an aircraft?

Securing finance for an aircraft can be achieved through aircraft loans or leases. Reputable aircraft financing companies like The Aircraft Lenders can guide you through the process to ensure the best results.

What are the different airplane financing options?

The most common airplane financing options are standard term loans and leases. Leases are usually reserved for commercial borrowers.  The right financing choices will depend on the buyer’s needs, financial circumstance, and goals.

What affects airplane financing rates?

Various factors can affect airplane financing rates. These factors include the type and age of the aircraft, how it will be used, the borrower’s credit score, and current market trends.

When you are in the market to finance an aircraft, remember to consult with experts like The Aircraft Lenders. They are there to help you get the best funding options for your needs, educating you about the intricacies of aviation finance, and ensure that you make a well-informed decision for your aircraft purchase its financing.