Aircraft Loan Rates

Written by Patricia Tunstall
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With online aircraft financing, you can browse several websites to find the company that strikes you as being professional and competitive in its rates. By providing specialized service, aircraft loan companies frequently offer lower rates and better terms than banks do. A combination of financial experience and knowledge of the aircraft loan industry makes for a company that understands the distinct needs of aircraft owners.

Look for a Full Service Loan Company

Although aviation loans are a specialized field within the lending industry, financing aircraft purchases is an area that requires extensive knowledge about manufacturers, models, and uses of various types of aircraft. A full service company will offer financing and refinancing for conventional aircraft, new or used, with streamlined procedures that get the funds to applicants in a hurry. The best way to get started and test the relative rates of several companies is to ask for a personal rate quote.

Look for any restrictions or prerequisites, such as minimum loan amounts, and then provide all the required information, which is similar to that requested for an application. The company will need to know the intended use of the plane, the kind of ownership arrangement, and the category of the aircraft. This includes normal, experimental, utility, aerobatic, restricted, and other.

As to the aircraft, a loan company needs to know the year, make and model. Aviation has almost as many acronyms as the federal government and its various agencies, and everything from ads to articles to applications are filled with arcane capitals. You will undoubtedly be asked for the TTAF (total time aircraft frame) and the engine time SMOH (since major overhaul). There are so many standard terms, however, that simplifying the jargon saves considerable time and repetition.

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