Prime Rate +
This is a variable loan program that adjusts when the Prime Rate changes. This is perfect for shorter-term loans or clients who wish to take advantage of the current lower rates in the market.  While rates are low, you will have the opportunity to pay down more principal balance thus building equity in your aircraft faster.

1 Year Fixed/Adjustable
This Product adjusts each year according to an index over the Prime Rate. This product still offers the flexibility of shorter term financing with the comfort of fixed monthly payments scheduled a year at a time.
 

3 Year Fixed/Adjustable
Since most aviation loans are held for approximately 3 years, this product tends to be the most popular option. Many of our customers like this option because maintenance cost, engine overhauls, and avionics upgrades often require an existing loan to be refinanced. This offers the confidence of a fixed rate for a typical term of an aircraft loan while allowing rate adjustments every 3 years without the requirement of a balloon payment or all new loan documents.
 

5 Year Fixed/Adjustable
This option is another great way to take advantage of the today’s low rates! If you are confident that you will have your aircraft for a few years and you will not need to finance any major repairs or upgrades, then this may be your best option.
 

5 or 7 Year Balloon
Many banks offer a 5 or 7-year balloon for aircraft loans. This program again offers the comfort of a fixed rate for a longer period of time; however, the largest draw back to this type of loan is a large payment or balloon that is due at the end of the term. This balloon payment will typically require you to either sell or refinance your aircraft at a time when rates will most likely be less friendly on your budget. In addition, the balloon programs, unlike the adjusted rate program, do not have a fixed index rate by which the interest rate will adjust.
 

15 – 20 Year Fixed
If you are not one for upgrading your plane and avionics, or financing overhauls every few years, then this type of program may be for you. Since rates are at their lowest point in years, many people think that this is the best loan program for them.

Before you choose a loan program, be sure to evaluate your specific needs and the plans for your aircraft. There is no need to pay a rate premium that is fixed for longer than you plan to keep your loan.

Collateral Based Financing Programs

Most aircraft financing programs are credit based, meaning the borrower or guarantor's credit is the main determining factor in the loan decision.  However, some lenders offer collateral based lending programs which are driven by the asset (i.e. aircraft) and not so much the borrower or guarantor's credit.  Rates are slightly higher with collateral based programs but they offer the borrower/guarantor an option to get the financing without having to be a guarantor.  Sometimes the lender will not offer the highest loan to value in collateral based transactions but each transaction is viewed differently and is subject to the lender's comfort level. 

Documentation
 
The following is a list of items common to most aircraft transactions between buyer, seller, and lender:  In most cases, your lender will guide you through the process of documents needed for funding your loan.

•  Purchase agreement with all conditions of sale
•  Earnest money deposit (including delivery charges, inspection charges, etc.)
•  Pre-purchase inspection report (including compliance with all applicable AD's and service bulletins)
• Report of required modifications and/or repairs
• Written brokerage agreement (if applicable)
• Title examination report (done by lender)
• Title encumbrance clearing documents, (lien releases, disclaimers, affidavits, etc.)
• State registration application (required in about half of the states)
• FCC radio station license application Form 404
• Delivery and acceptance receipt
• Insurance binder
• Ancillary documents of authority, (power of attorney, corporate resolution, letters testamentary/of administration, etc.
• Written escrow disbursement schedule
• FAA registration application
• FAA Bill of sale
• Security agreement / promissory note (where applicable)
• Trust agreement (where applicable)
• Miscellaneous documents (amendments, assignments, consents of financial institution)
• Import/Export documents (Certificate of Airworthiness, ferry permit, customs documents, etc.,  where applicable