If you plan to add an airplane to your collection of assets, then it is probably a great idea. Owning a private jet brings a sense of pride and a feeling of luxury. You do not buy a Boeing every day. And if you do, then that has to be counted as an achievement irrelevant to the frequency. But, Aircraft pretty much cost a million billion dollars and at times come with additional charges which you might miss noticing.
If you are willing to take a chance and add a milestone to your life, then there is nothing better than giving yourself an airplane since you cannot get wings to fly! In this article, we have listed out some easy and affordable financing options like the Aerospace Union that you can choose from to help you with the process.
The best way to keep most of your money in your kitty and own an aircraft by paying regular installments is the best possible way to retain both – cash and an asset. Just like you can get a credit card sanctioned from your bank, which allows you to buy specific items up to a set limit, the aircraft lease also works in the same manner. Once you have decided on the aircraft you want to buy, you can directly talk to the manufacturer and set the signing amount.
Once that is established and paid, you can reach out to a financial service or a company that will buy the aircraft on your behalf and will lease it to you. This will allow you to pay and fulfill the big chunk of money for the aircraft in easy installments. Once the entire money has been paid, the complete ownership will be transferred to you. This is one method used by most big airline companies as they buy fleets of airplanes at once.
Jet Loan Company
Multiple companies work directly into aviation lending facilities. Now, rather than applying for a loan with a bank, it is always easier and better to get one directly from a company that deals in aircraft. A lending company that specializes in airplanes will be able to tell you about any other extra charges that you might need to pay during the course of the life of your aircraft. This is something that a general agent will not be aware of, and ultimately you will not be able to receive any such information.
Often, such valuable information is not shared with the clients. Ultimately, there is a big pile of loss or extra charges since many people fall into the trap of cheap aircraft that are second-hand. Aviation companies also have experienced people who will always give you the best insight into the current market rates. If you are lucky, you can also get someone who will be able to show you a few better options on aircraft that suit your budget!
Banking and credit scores go hand in hand. You cannot expect one thing to be alive without the other. The main idea behind the lending system at the bank is that you will always need a good credit score, a co-borrower, or just some collateral against which you can get your loan passed. That goes the same without saying when you are even buying an airplane. If you are fortunate to have a decent FICO score and have been able to build your own empire of assets and valuables, then you can easily apply for a loan at your bank.
The loan will be typically sanctioned for 70% to 90% of the airplane’s entire cost, which primarily depends on the credit score you have maintained. All the other lending facilities are safe, but people’s faith in the banks has been immense. Plus, you will always get flexible dates, lower rates of interest, and various other tax benefits if you keep your financial transactions up to and running at the same bank.
No matter how rich you are, an investment, even if it amounts to one thousand dollars, is still an investment up against a billion dollars. As someone who has worked hard to accumulate all that wealth, you cannot simply let everything blow up just by making some wrong decisions while selecting your source of finance. So, if you want to get the best returns, safely and positively, it will be wise to choose from any of the three aforementioned financing options.
You can quickly get yourself the best deals simply by having a good network, solid connections, and a leveled FICO score as per your credit transactions. The banks can be picky about sanctioning a loan at times, but you will always have other options to choose from! So, buy your dream aircraft today and strike a milestone off your bucket list.