Today’s corporate environment is more global. And many business jet customers want private aircraft solutions that can transport them both close and far, frequently crossing an ocean for a conference and then flying to another continent.
Aircraft owners can minimize cash flow demands and/or develop an extra cash resource by taking advantage of very cheap financing rates.
Owners and others may be able to do so through refinancing, borrowing, and leasing aircraft, cashing out equity or engaging in sale-leaseback agreements. Aircraft financing companies are available around the world that can offer great deals for jet financing.
In this article, we will provide you with information that you may take into consideration when acquiring aircraft financing to avoid future hurdles and setbacks.
Road To A Successful Aircraft Financing
Supporting Documents
To expedite the process, gather your tax reports, financial statements, and personal net worth information to submit with your application.
Applications with W-2s but no business owners receive the fastest approvals, generally within 1-2 days. Applicants with business entities may need to wait longer for approval.
Complete An Application
To minimize a delay in processing, fill out the application as thoroughly as possible, and remember to sign it with an original signature before sending it through the online portal.
Get An Approval or Pre-Approval
Your account executive and analyst will find and pick the best lender based on your aircraft choices, use, loan structure, and financial history once your application package is complete.
Further, opting for shopping?
A pre-approval guarantees that:
- You don’t miss out on the plane of your dreams owing to a lack of funds.
- Your loan will be completed shortly.
- You get 90 days to choose your aircraft, with a 30-day pricing lock
Schedule A Pre-Purchase Selection
An impartial third-party pre-buy examination is strongly advised to minimize surprises and conflicts of interest after acquiring possession of the aircraft.
Typically, the prospective buyer covers the cost of repositioning the aircraft for the pre-buy, while the seller covers any airworthiness-related maintenance concerns.
Negotiating The Agreement
Don’t just sign anything the vendor gives you. Have someone acquainted with the procedure look it through to make sure it’s balanced.
The purchase and sale agreement is a legally binding contract that establishes the selling price and all closing conditions, such as the time to complete a pre-purchase, the time to complete a transaction, how and where escrow and deposit are taken, and who pays to move the aircraft, among other things.
Schedule An Inspection
To minimize any surprises or conflicts of interest after you assume possession of the aircraft, financing companies strongly recommend a pre-purchase examination by an impartial third party.
Typically, the prospective buyer covers the cost of repositioning the aircraft for the pre-buy, while the seller covers any airworthiness-related maintenance concerns.
The Bottom Line
Successful aircraft financing is a must for the corporate world. We want an easy and successful transaction and a smooth sailing process.
It’s a worthy investment, and it’s not a small amount of money. It makes an aircraft financing company an essential factor in acquiring your jet. The things listed are heads up for aviation financing to prevent you from encountering any problems in the future.