Tips for Financing Aircraft Successfully
Purchasing a plane or helicopter is no small undertaking. It can be an investment in an air chartering business, a perk for executives or something for personal use. Regardless of the intended use, even the smallest aircraft is a big purchase. So, you may be looking for financing options to help to spread out the cost. The following tips will help.
1) Make the Right Purchase
Perhaps the most important step in getting financing is to find the right plane for your needs. Take some time to shop around and look for a good price. You don’t want to invest a large chunk of cash into a purchase only to realize that it won’t satisfy your needs. Arguably an even worse situation would be buying too much plane. They aren’t cheap to run. So, make sure you find something that is just right.
2) Know Who Will Buy It
This may sound very simple, but you need to know who will own the plane or helicopter after you have purchased it. This isn’t always a straightforward thing. Significantly, you want to ensure that everyone involved (co-investors, business partners etc.) has the correct rights for using it. In many cases, it makes sense to establish an entity that will own and operate the plane. Consult an attorney for help.
3) Consider Leasing
You don’t necessarily need to buy vehicles outright. Much like with a car or truck, you can lease planes and helicopters. In many cases, this provides the flexibility that potential purchasers want. Another good option is to work with a charter service. You may be able to get all the benefits without the risks.
4) Explore Your Loan Options
There are a number of loan types that can be relevant for this purchase. You may use credit-, asset-, or relationship-based financing. It can help to work with a private lender (relationship-based) because institutional lenders are not always keen on loans for planes and helicopters. Alternatively, having collateral may be important.
5) Shop Around
Finally, shop around for specific quotes. There can be a lot of variance between different financing options. So, you don’t want to just settle for your first offer. Instead, make sure you know what options are on the table.
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With the above tips, you will have an easier time landing aircraft financing. When you want to invest in a plane to a helicopter, it is important to know how you can manage the cost.