Getting an aircraft is a big decision for any business. Not only is it a significant investment, but it also comes with ongoing maintenance and operating costs.
Before purchasing an aircraft, you need to ask a few key questions; this will ensure you get the best possible financing deal for your business aviation needs. Read on to learn more!
5 Questions To Ask Before Getting An Aircraft Loan
1) What Type Of Aircraft Are You Planning To Buy?
The first question you need to ask when considering aircraft financing is what type of aircraft you’re looking to purchase. Aircraft types have different financing options, so it’s important to know what you’re looking for before beginning the process.
2) How Old Will The Aircraft Be If Shopping From The Pre-Owned Market?
The age of the aircraft you’re looking to purchase will also play a role in the financing options available to you. Older aircraft may not be eligible for certain types of loans, so keeping this in mind when shopping around is essential. However, most lenders will finance newer aircraft with no issue.
3) Where Is The Aircraft Going To Be Based Once It’s Placed In Operation?
It’s a good idea to work with a lender in the same region where you’ll base the aircraft you’re looking to buy. The lender will know the area and structure of a contract depending on the risks involved in basing and operating an aircraft there.
4) How Long Would The Preferred Term Of The Loan Be?
The term of your loan will affect both your monthly payments and the total amount of interest you’ll pay over the life of the loan.
The aircraft’s age will determine the loan’s length; shorter terms will have higher monthly payments, but you’ll pay less overall interest. On the other hand, longer terms will have lower monthly payments; you must consider everything before deciding.
5) How Risk-Averse Are You To Aircraft Value Deterioration?
The final question to ask yourself before getting aircraft financing is how risk-averse you are to aircraft value deterioration. If you’re uncomfortable with the possibility of the aircraft’s value depreciating over time, you should consider a leasing option.
Make Your Aviation Dreams Come True With AirFleet Capital’s Aircraft Loans
You have to consider all of these questions before getting an aircraft finance solution in order to find the best deal for your business aviation needs. At AirFleet Capital, you can be confident you’re working with the experts.
We have various aviation finance options available, so we can tailor a package to fit your specific needs. Learn more about our company and services today!