For Part 91 use (personal/business), you will need to put 15% – 20% down. Part 135 use (charter) requires 20% down, and flight school leaseback requires 25% down. For loans over $1.5mm, 20% down is the norm.
2 years of tax returns (3 years for a commercial loan), bank statements to show liquidity position, a spec sheet on the aircraft you are financing (unless this is a pre-approval), W2s and a recent paystub (if applicable), interim financial statements and a debt schedule for your business (if applicable), and our completed application.
Yes, we have financing sources for all ages of aircraft.
Once we have a complete financial package from you, we can generally get a credit decision in 2 business days for a personal loan, and 1.5 – 2 weeks for a commercial loan. Closing can be accomplished 3 business days after we have a complete closing package.
Credit, cash flow, collateral, liquidity, and character. Lenders like to see a clean credit history, particularly within the last 2 years, and they generally look for a debt-to-income ratio of no higher than 40% – 45%. They prefer aircraft with no damage history, complete logs, average or low airframe time for the year, and low-mid time engines. In addition to showing funds for the down payment, lenders want to see a cushion of 6-12 months of total debt service coverage. They also factor in the cost of ownership of the proposed aircraft acquisition when decisioning a loan.
We have competitive financing sources for charter, whether it’s supplemental charter or 100% charter. Lenders do not generally take into account projected charter revenues when decisioning loans.
Yes, for certain makes and models of aircraft at $1.5mm + in value, we have a low-docs financing solution. Aircraft must be no older than 14 years old.
Once we have a complete closing package (required logbook pages and/or maintenance reports, signed purchase agreement, insurance, pre-buy completed etc.), we can close around 3 business days later.
Closing is done through a bank-approved escrow-title company that handles the funds and the FAA paperwork. You will also be required to obtain insurance that names the bank as loss payee, prior to closing.
