Getting a loan to buy anything can be stressful and time consuming. It is always easier to get the money when you can prove to the lender you don't really need it. Any way you look at it, a plane is a major purchase, and not one just any lender is willing to finance. In order to get the best aircraft financing possible, there are some simple steps you can take.
If you are buying your first plane, it might be a good idea to sit down with a financial advisor to get everything in order before you approach a loan officer. The kind of loan you are able to get will depend, in part, on the kind of plane you are interested in. Your advisor will be able to tell whether or not you can qualify for the financing, and if not, what you need to do to make yourself more attractive to financial institutions.
Financial institutions may be more concerned about your ability to repay your loan than they are about exactly what you are going to buy with the money. On the off chance that you fail to meet your obligations however, they want to feel comfortable that the plane is worth the money they loaned you. If you are interested in an older plane, getting a decent loan may be more challenging than if you are purchasing a new model.
Before you go to all the trouble of applying for a loan, your accountant might advise you to consider a lease. If you don't need the tax depreciation, that might be the better option. All things being equal, you could ask for a leasing proposal and an outright purchase proposal. A lot of financial institutions stay out of the leasing business however, so that can limit your options.
The person actually purchasing the plane is an important consideration and one that many don't think about at first. The final decision will depend on liability, operating rules, tax considerations, and how partners or others are going to use and help pay for the plane. Whether or not a commercial business or private individual is the principal buyer might determine which financial institution ends up lending the money.
It is seldom a good idea to talk to only one lender. You need to get several proposals if you can. You should also go in asking for everything, and see how much you can get. You might not get a twenty-five year one hundred percent loan, but you can ask for it.
Once you have gotten your proposal, you can begin negotiations. You don't want to show one lending institution what another is offering, but you can sit down with your preferred lender and try to get a compromise. If all things are equal, you should probably go with the lender with the most experience in aircraft loans.
Private planes are convenient and can be good investments. Most owners prefer them to commercial flight. Getting a good loan makes the experience even better.
If you are buying your first plane, it might be a good idea to sit down with a financial advisor to get everything in order before you approach a loan officer. The kind of loan you are able to get will depend, in part, on the kind of plane you are interested in. Your advisor will be able to tell whether or not you can qualify for the financing, and if not, what you need to do to make yourself more attractive to financial institutions.
Financial institutions may be more concerned about your ability to repay your loan than they are about exactly what you are going to buy with the money. On the off chance that you fail to meet your obligations however, they want to feel comfortable that the plane is worth the money they loaned you. If you are interested in an older plane, getting a decent loan may be more challenging than if you are purchasing a new model.
Before you go to all the trouble of applying for a loan, your accountant might advise you to consider a lease. If you don't need the tax depreciation, that might be the better option. All things being equal, you could ask for a leasing proposal and an outright purchase proposal. A lot of financial institutions stay out of the leasing business however, so that can limit your options.
The person actually purchasing the plane is an important consideration and one that many don't think about at first. The final decision will depend on liability, operating rules, tax considerations, and how partners or others are going to use and help pay for the plane. Whether or not a commercial business or private individual is the principal buyer might determine which financial institution ends up lending the money.
It is seldom a good idea to talk to only one lender. You need to get several proposals if you can. You should also go in asking for everything, and see how much you can get. You might not get a twenty-five year one hundred percent loan, but you can ask for it.
Once you have gotten your proposal, you can begin negotiations. You don't want to show one lending institution what another is offering, but you can sit down with your preferred lender and try to get a compromise. If all things are equal, you should probably go with the lender with the most experience in aircraft loans.
Private planes are convenient and can be good investments. Most owners prefer them to commercial flight. Getting a good loan makes the experience even better.
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You can find complete details about different aircraft financing options and more info about a reliable lender at http://www.milehighmoney.com/about right now.
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