A Basic Guide to Aircraft Financing
Posted by Jake in Aircraft Financing on September 24, 2009
If you travel on a regular basis for business you know that traveling by commercial means can restrict you as to when and where you can travel. In addition, you’re faced with what seems like insurmountable problems with long lines, vehicular traffic and security restrictions before you can fly to your intended destination. Therefore, aircraft financing with respect to flying privately many times can offer a good solution with respect to your current travel and aviation needs.
Restrictions Imposed by Commercial Travel
Considering any type of aircraft finance plan can be helpful in realizing the reliability and dependability of controlling when and where you fly. You can appreciate the need for this type of financing arrangement especially when you think about the times when your whole business schedule can be thrown off keel by a delayed flight or fighting traffic in order to meet an appointment or scheduled meeting.
Think how aircraft financing can alleviate any of the aforementioned struggles by comfortably locking you into a flying routine or regimen. You can go where you want and keep your planned activities on course as you intended. Plus, with a private plane you will be afforded the privacy and rest needed to prepare for your scheduled meetings and activities.
Therefore, let’s look at some of the ways you can use aircraft financing to facilitate easier ways for you to travel by air.
Commercial Aircraft Financing
If you’re considering commercial aircraft financing, then you want the convenience and benefits that private ownership or fractional ownership of an aircraft can provide, especially with regards to the allocation of time. Both types of aircraft finance plans do require an upfront expenditure as well as ongoing costs with regards to upkeep and closely related costs.
Nevertheless, jet ownership in particular gives the flyer the freedom to fly on a moment’s notice and maintain a reasonable schedule with regards to his business activities. If you opt for fractional ownership you are indeed permitted more flexibility as well with regards to your choices of how and when you can fly. However, if you are a flyer disposed to an erratic flight schedule or if the trips you make too often vary in duration then a different type of finance option may be more to your liking. Regardless, most business people see the wisdom in commercial aircraft financing as it definitely lends them the ability to travel as they want
Fractional Ownership
With fractional ownership, you have the benefit of reducing the need to secure total funding for the aircraft in which you choose to travel. With this financing arrangement, you can choose to finance one or more planes and can select to fly domestically or internationally. Fractional ownership is, without question, an option to choose if you want all the advantages of owning your own aircraft without the added upfront costs and the increased expenditures of upkeep, storage or similar considerations.
Experimental Aircraft Financing
If you’re not a commercial traveler but need to use an aircraft for experimental purposes, then experimental aircraft financing can be a viable way to finance the plane you use for such purposes.
This type of aircraft finance plan is applicable for financing experimental aircraft as well as planes that are built from kits. FAA certification is required. Sometimes an appraisal is required based on the type of craft you want to purchase and the amount of the loan. Kit-built aircraft typically will require a larger down payment as well.
Nonetheless, you can obtain low aircraft financing rates when financing this type of aircraft. Just make sure you have documentation that describes the aircraft in terms of avionics, airframe times and the type of engine it houses. Any applications that are submitted via a flying club, limited liability corporation (LLC) or corporation are based on the applicant’s credit history and pledge toward repayment.
Hopefully, the above information has given you a basic overview of the subject of aircraft finance so you can look into the advantages of using it for your own aviation needs or business.
