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're a first time plane buyer, it would be a good idea to sit down and talk to a financial officer to find out what you need to do to qualify for a loan. You also want to know what kinds of loans they are willing to make on the type of plane you are interested in. If there are things you need to do in order to become a better candidate for a good loan, you should know that before you have settled on a plane.
When you first apply for a plane loan, it might seem like the lender is only interested in your ability to repay it. They will be concerned eventually about the collateral you are putting up and whether or not the plane is worth the loan amount. They don't want to be left with a non-performing asset on their books if you aren't able to meet your loan obligations. They will also be less inclined to lend money for a used or vintage model craft.
Before you actually take out a loan to purchase a plane, you probably need to consult your accountant to see whether or not a lease agreement would be better for your situation. If you need a tax depreciation, buying might be the best idea. You could always get proposals for a loan and for a lease to see which terms are the most attractive. You should be aware though, that a lot of financial institutions only make purchase loans.
Whether the signer on the loan is an individual or a commercial enterprise can make a big difference in whether or not you get the money to buy. Lenders look at who is going to be using the asset and who will have the real ability to repay the loan. They also consider taxes, liability, and operating regulations. A corporate officer might have a better chance of approval than the corporation.
It's always a good idea to get more than one proposal when you're looking for good financing. You should ask for everything you want, like no down payment with a twenty-five year amortization. You might not get everything you want, but you will find out what is possible.
You don't have to accept the first proposal you are offered. Even if you don't try to negotiate by showing your preferred lender the competition's proposal, it is something you can use to obtain the terms you want. If the proposals are similar, you might want to take the offer of the lender with the most experience financing aircraft.
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're a first time plane buyer, it would be a good idea to sit down and talk to a financial officer to find out what you need to do to qualify for a loan. You also want to know what kinds of loans they are willing to make on the type of plane you are interested in. If there are things you need to do in order to become a better candidate for a good loan, you should know that before you have settled on a plane.
When you first apply for a plane loan, it might seem like the lender is only interested in your ability to repay it. They will be concerned eventually about the collateral you are putting up and whether or not the plane is worth the loan amount. They don't want to be left with a non-performing asset on their books if you aren't able to meet your loan obligations. They will also be less inclined to lend money for a used or vintage model craft.
Before you actually take out a loan to purchase a plane, you probably need to consult your accountant to see whether or not a lease agreement would be better for your situation. If you need a tax depreciation, buying might be the best idea. You could always get proposals for a loan and for a lease to see which terms are the most attractive. You should be aware though, that a lot of financial institutions only make purchase loans.
Whether the signer on the loan is an individual or a commercial enterprise can make a big difference in whether or not you get the money to buy. Lenders look at who is going to be using the asset and who will have the real ability to repay the loan. They also consider taxes, liability, and operating regulations. A corporate officer might have a better chance of approval than the corporation.
It's always a good idea to get more than one proposal when you're looking for good financing. You should ask for everything you want, like no down payment with a twenty-five year amortization. You might not get everything you want, but you will find out what is possible.
You don't have to accept the first proposal you are offered. Even if you don't try to negotiate by showing your preferred lender the competition's proposal, it is something you can use to obtain the terms you want. If the proposals are similar, you might want to take the offer of the lender with the most experience financing aircraft.
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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