Owning a small business aircraft comes with many advantages that can help your company succeed. From strengthening client relations and saving time to increasing employee productivity and satisfaction, there are numerous ways owning a business aircraft can benefit you.
Unfortunately, the cost of buying an aircraft can be a major obstacle that stands between small business owners and their dreams. Fortunately, there are ways to get the funding you need for your aircraft purchase.
Spot the Right Aircraft
Financiers are more likely to finance an aircraft purchase if they have confidence in the rightness of their choice. You need to find an aircraft that meets your requirements, fits within your budget, and is available on the market.
The best place to start researching is online where you can compare different makes and models to see which one suits you best. It’s important to take into account aspects such as size, range, and cabin configuration.
For instance, a small jet or turboprop can have high performance and lower costs, but may not have the range you need if, for example, you’re planning to fly long distances.
Get Pre-approved Financing
When researching aircraft financing options, it is essential to shop around and compare rates. Many lenders offer pre-approval which can be helpful in negotiating with sellers or brokers. Having a pre-approval can also help you secure the best terms and interest rates.
The most common type of aircraft financing is an equipment loan, which is a loan used to purchase an aircraft that will be used primarily for business purposes.
You may also be able to take advantage of a leasing program, which is a good option if you plan on upgrading your aircraft after a few years.
The amount of money you can borrow and the interest rate varies depending on your credit score, financial background, and other factors.
Prepare The Necessary Documents
When applying for financing, you will need to provide a variety of documents, including financial statements, tax returns, and proof of ownership.
Additionally, some lenders may require additional information, such as aircraft maintenance records or detailed information about the aircraft’s performance capabilities. Having all these documents prepared ahead of time can help make the process smoother and faster.
It is also important to keep in mind that lenders will be looking for information about the company’s financial standing, so it is critical to have a good credit score and a healthy financial background.
Find Professional Help
Securing financing for an aircraft can be a complex and tedious process. The best way to ensure that the process goes smoothly is to find a professional who can help you. A reputable company, such as Stratos Jet Charters, can provide you with the advice, guidance, and service needed to secure the best financing options available.
Companies that specialize in aircraft financing can provide you with the expertise and resources you need to make sure that your loan is approved and processed quickly. If you get the right one, you don’t have to worry about being taken advantage of or being overcharged for the loan.
Negotiate the Terms
Once you have been pre-approved for a loan, it’s important to negotiate the best terms and rates. Be sure to understand all aspects of the loan agreement before signing, including repayment schedules, interest rates, fees, and other costs associated with the loan.
It is also important to consider whether you should get an adjustable rate or fixed rate loan as well as the length of time for repayment. Lastly, make sure to read the fine print so that you understand all the terms and conditions associated with the loan. Having a good negotiator on your side can help ensure that you get the best terms and interest rates available.
Investing in an aircraft is a big decision that requires careful consideration and planning. With a bit of research, you will be able to find the right financing solution to fit your needs and budget.
This way, you will be able to enjoy the advantages of owning a business aircraft without having to worry about the financial burden. Whatever you do, make sure that you take the time to explore all your options and shop around for the best financing solution.