Defining your aircraft mission is critical when financing a private jet. Aircraft Loans for Part 135 charter missions can have different structures from Part 91 missions for personal business use.
If you’re considering financing a charter airplane, The Aircraft Lenders offers a range of solutions tailored to your individual needs, with a choice of aircraft loans or leases.
Our expert aviation finance specialists can guide you through the options and the entire process effectively, from an overview of possible rates and terms for suitable aircraft financing options, all the way through to approval and closing.
When considering a charter airplane purchase, it’s important to understand that not all charter is equal in the eyes of lenders.
The Aircraft Lenders’ role is to stay current on all the lending options offered by aircraft financing companies. We are aviation financing matchmakers, with a deep knowledge of all options available in aviation finance. We know which lenders prefer which types of aircraft and missions, and what each lender looks for in prospective borrowers.
When you use The Aircraft Lenders to arrange the necessary capital for your aircraft purchases, our expertise in arranging term loans or aircraft leasing will ensure you achieve the best rates and terms. We also offer advice and assistance on things like aircraft purchase agreements, management agreements, dry leases etc.
The Aircraft Lenders is an invaluable partner in the acquisition process.
Aircraft leasing offers an alternative to outright ownership, and it usually provides 100% financing. Operating leases are akin to renting the plane for an agreed-upon timeframe with a contract that defines all the terms. Finance leases also usually offer 100% financing. Most leases have the lender or lessor holding the title, although some leasing lenders can structure the financing so the lessee holds the title. Since businesses can’t take depreciation unless they own an aircraft, this is an important consideration.
An aircraft purchase agreement is of course essential to define the terms of the purchase and sale, and it is a critical document in the financing process. It details the aircraft purchase price, and defines buyer, seller, pre-buy inspection terms, aircraft acceptance terms, delivery conditions, and other essential terms that protect both the buyers’ and sellers’ interests.
Registering an aircraft with the FAA is a regulatory requirement by both the FAA and aircraft lenders. At closing, the lender will perfect their lien on the aircraft by filing the security agreement with the FAA. This is done through an aviation escrow-title agent.
Aircraft maintenance is another crucial factor in financing. Aircraft must be airworthy to close on financing, and of course must have completed required annual or phase inspections. Maintenance must be properly documented in logbooks, and digital maintenance tracking programs, if applicable.
Aircraft insurance is necessary to protect against risks associated with aircraft ownership and operations, as well as aircraft damage due to accidents. It provides financial protection for the owner and is a requirement for financing. When you finance an aircraft, the lender is named as lienholder on the insurance.
Owning an aircraft comes with the responsibility of managing it effectively. This includes handling the maintenance, flight plans, ongoing maintenance, and, if applicable, crew. Aircraft management companies can assist in this regard, ensuring compliance with aviation regulations and standards.
In this comprehensive guide, we have covered the crucial aspects of financing a charter airplane, including how to finance a private jet, the role of Aircraft Lenders in helping obtain the best financing options, the possibilities that aircraft leasing offers, and the different aircraft ownership responsibilities to be aware of.
These components are integral for individuals and corporations looking to enter the private aviation market. Give The Aircraft Lenders a call to talk through potential options and considerations.
