Financing terms will vary depending on the utilization of the aircraft. This is due to the depreciation profile of the aircraft - with more hours, there is more wear and tear and faster devaluation of the aircraft. For that reason, the loan is structured to more closely align itself with its market value, typically by a combination of a higher down payment and shorter term. This way, when you decide to sell or upgrade the aircraft, you aren't upside down (owe more money than it's worth).
Yes. We collect complete tax returns including schedules, statements, K-1s and W-2s for both personal and business returns. We do this in order to get a complete financial picture - specifically adding back any sort of non-cash losses or other earnings that do not report on the bottom line. It also helps us understand your financial situation better and alleviate some of the back and forth questions we may have otherwise.
If you have EVER had a bankruptcy for any reason, please list this on your application. If we find out there was a bankruptcy that is not disclosed, this will negatively affect your submission. We may be able to consider applicants that have past bankruptcies, but need to understand the background with the bankruptcy filing, need to see a re-established credit history (excellent credit) since that time, and typically like to see a minimum of 7 years since the bankruptcy discharge.
We are happy to finance partnerships of up to 4 individuals. As a partnership, you will need to agree on how you will register the aircraft and all partners will need to be available to sign closing documents. Unless applicants are spouses with joint tax returns, we will need a complete and separate application package from each partner in the group. Please allow a little extra time for the underwriting depending on the number of partners.
An escrow closing is becoming standard in the aviation industry similar to home mortgage closings. In order to ensure accurate title transfer without any risk to your asset, an aviation title and escrow company is required to facilitate the transaction. This protects all parties, including you as the buyer, the seller and the lender. For more information on escrow services, check out our list of preferred FAA title companies.
The IR was established in 2006 as a result of The Cape Town Treaty and International Registry of Mobile Assets ("Cape Town Treaty"). The IR has replaced FAA filing as priority in perfecting interests in ownership, etc. for particular assets (generally for larger aircraft). If you are a buyer, seller, or anyone who has an interest in the Aircraft Object you qualify for IR filing. The IR is not concerned with how you use your aircraft - domestic or international - but what type of Aircraft you own. IR registration is completed via the internet and your title company can perform IR functions on your behalf making IR transactions much easier for you.
Aircraft Objects Eligible for IR Recording meet one or more of the following:
Airframes that are type certificated to transport:
At least 8 persons including crew; or
Goods in excess of 6050 pounds
Helicopters that are type certificated to transport:
At least 5 persons including crew; or
Goods in excess of 990 pounds
Jet propulsion aircraft engines with at least 1750 pounds of thrust or its equivalent.
Turbine-powered or Piston-powered aircraft engines with at least 550 rated take-off horsepower or its equivalent.
To see if your aircraft is IR eligible click here and select the link "Cape Town Eligible Aircraft".
We work with the aviation escrow and title company to ensure accurate recordation of your purchase. We will not fund until we have been advised that there is clear title and you are assured of the ability to immediately file a complete registration at the FAA. If you are in need of an escrow company referral, please click here.
Verification of liquid assets relates to verifying the money on hand that you list as cash, checking, saving, stocks, bonds, etc. To verify this, we need account summary statements that you receive in the mail or are printed from online banking sites. These print-outs need to include account type, your name, date and balance.
Yes. AirFleet is able to finance some upgrades as part of your initial purchase or for an aircraft you already own. We will complete a before and after book value based on a current aircraft specification sheet and a quote for the improvements you are planning. Once we have done this, we can let you know how much of the improvement cost we can finance. Please note that we are able to finance engine overhauls, avionics and other large modifications; however, we cannot finance paint, interior or maintenance repairs.
AirFleet does not include sales tax as part of the financing process. This will need to be paid separate from the financing transaction and cannot be counted as part of the down payment. The complexities of sales tax as it varies for location, use, registration, etc. will need to be handled with a tax attorney. We recommend you utilize an aviation-specific tax attorney if possible.
Your financial security is one of our top priorities. We have systems in place that meet the standards of federal banks. Our email server and documentation storage on the cloud represent today's cutting edge in internet safety and you can be assured that your sensitive information is secure.