When it comes to financing an aircraft, choosing the right lending partner for the journey is crucial. That’s why it’s best to use the services of an experienced aircraft financing broker, such as The Aircraft Lenders. We offer a range of aircraft loan options to suit a variety of financing needs.
Understanding the Basics of Aircraft Financing
The process of financing an aircraft starts with learning about the possible options available, considering the age and price point of the aircraft you are interested in, your mission for the aircraft, and your financial profile. Whether you are interested in acquiring an aircraft for personal/business or commercial purposes, The Aircraft Lenders can help with all stages of the process. Here are a few keys stages in the acquisition process:
- Asset Valuation – What’s the value of the aircraft you are interested in? It’s important to understand that lenders do their own valuations of the aircraft they lend on, and The Aircraft Lenders uses the same valuation tools the bank does, to help you get ahead of any value issues.
- Financial Requirements – The Aircraft Lenders knows how the banks evaluate financial packages, and they pre-underwrite all deals to target the best lender from the start.
- Presenting the Best Financing Options – The Aircraft Lenders will quote a number of financing options to you.
- Pitching Your Deal – The Aircraft Lenders works to address any potential questions on your financial package prior to submitting to any lenders, aiming to present your financing request in the best light possible.
- Approval and Closing – Once your deal is approved, The Aircraft Lenders sticks with your deal all the way through to closing, working to resolve any issues that come up, and coordinating with all parties until the deal is closed.
Customized Financing Options
A Wide Variety of Aircraft – Whatever kind of aircraft you want to finance, we can help. We have financing options for:
- Piston aircraft, whether single-engine or twin-engine
- Turboprops
- Jets
- Helicopters
- Experimental Aircraft
- Light Sport Aircraft
- Kit Aircraft
- Older Aircraft
- Most missions – Part 91, Part 135, Flight Schools
- Charter Operators
Aircraft Loans and Aircraft Leasing
Term loans are the most frequently used financing structure for general aviation financing. These loans involve 15% – 20% down, they have terms of 5-20 years, and amortizations of up to 20 years. These are usually simple interest loans.
Leases are usually only available to businesses, unless the lease is an operating lease (basically a rental contract). Leases generally offer 5-year terms on a full payout, although it can be possible to get a longer amortization. The advantage of a lease is that is doesn’t have to appear on your business balance sheet. Some leases are structured so that the aircraft is returned to the lessor at the end of the lease, while other have a provision for a buyout, transferring ownership to the lessee at the end of the term.
The Aircraft Lenders partners with the leading aircraft loan and leasing companies to offer competitive loan and lease rates and terms that cater to various uses and durations.
Comprehensive Support and Guidance
The Aircraft Lenders doesn’t just provide funding, but also extensive support and guidance throughout the aircraft purchase process. This includes providing insights into depreciation, tax benefits, and insurance considerations that invariably affect the total cost of ownership. Having a financial partner who understands not only loan processing but also the nuances of the aviation finance sector can make a significant difference to your purchasing experience.
Frequently Asked Questions
1. What type of aircraft can The Aircraft Lenders finance?
The Aircraft Lenders can finance a wide range of aircraft, including piston aircraft, private jets, commercial airplanes, helicopters, light sport aircraft, experimental aircraft, and kit aircraft.
2. What are some of the factors that influence airplane financing rates?
Many factors influencer airplane financing rates including the credit profile of the borrower, the type and age of the aircraft, the mission for the aircraft, and prevailing market conditions.
3. What is the difference between aircraft leasing and aircraft loans?
In a loan, financing is usually 85% -80% of the value or purchase price of the aircraft. The borrower buys the aircraft, registers the aircraft with the FAA in their name or their holding entity of choice, and makes loan repayments to the lender, building their equity in the asset. The lender places a lien on the aircraft and files it with the FAA. Once the loan is paid off, either through making all the payments or simply paying off the loan balance in total, the lien on the aircraft is removed.
In a lease, financing is usually 100% of purchase price. Lessors usually retain title to the aircraft. Some leases are structured so that the aircraft is simply returned to the lessor at the end of the lease, while other have a provision for purchase via a lump sum payment at the end of the term.
Choosing the right financial partner for your aircraft purchase or lease is an essential step toward efficient and satisfactory ownership. With comprehensive financing options, expert advice, and a broad range of aircraft coverage, The Aircraft Lenders have successfully positioned themselves as reliable and trusted partners in the aviation finance industry. Check out our testimonials here.
We are standing by to assist you. Please get in touch at 1-973-577-4226 or info@theaircraftlenders.com.
