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FINANCING SOLUTIONS

FINANCING SOLUTIONS
Financing Options Legal and Tax Considerations Financing Simulation Request
Down Arrow FINANCING SOLUTIONS
Financing Options Legal and Tax Considerations Financing Simulation Request

Financing Options

Choose between 3 types of financing

Traditional Loan
Finance Lease
Operating Lease
Traditional Loan
With a traditional loan, you receive financing to purchase an aircraft, allowing you to become the owner from the start of the loan. You are required to make regular payments throughout the loan term, which can range from 5 to 10 years, typically including both principal and interest. The aircraft usually serves as collateral for the loan.
Advantages
  • 1
    Predictable Payments
    Traditional loans offer fixed payment structures, allowing you to budget and manage your cash flow with regular and predictable payments throughout the loan term.
  • 2
    Equity Accumulation
    As you make payments, you build equity in the aircraft, which can be advantageous for future resale or obtaining additional financing.
  • 3
    Tax Benefits
    Interest payments on the loan may be tax-deductible, providing potential tax advantages while allowing you to fully own and control the asset.
Finance Lease
With a finance lease, you’ll only be expected to provide an initial down payment (as a higher initial rent) towards the acquisition cost of the aircraft (typically between 15% and 50% of the aircraft cost, according to your preferences). The bank partner provides the remaining balance of the acquisition cost in your finance lease. The terms of a finance lease typically cover a period of 5 to 12 years. At the end of the lease, you have the option to purchase the aircraft at a predetermined residual value (usually between 5% and 15% of the initial value of the asset).
Advantages
  • 1
    Lower Initial Capital
    You only need an initial down payment, often in the form of a higher initial rent, which reduces the capital required compared to a direct purchase.
  • 2
    Tax Benefits
    Lease payments can often be deducted as operating expenses, offering significant tax advantages.
  • 3
    Customized Financing Options
    Lease terms can be tailored to meet your specific business needs, including the duration, payment amounts, and purchase conditions.
  • 4
    Increased Privacy
    Leasing an aircraft provides increased privacy, as your name or business entity does not appear on ownership documents or in public records, which can be advantageous for maintaining confidentiality and protecting your privacy.
Operating Lease
With an operating lease, you gain access to an aircraft for a defined period, usually shorter than the aircraft's useful life, without acquiring ownership. The lease typically covers a term of 1 to 7 years, after which the aircraft is returned to the lessor. The lessee is responsible for regular lease payments, which include maintenance and insurance costs.
Advantages
  • 1
    Flexibility and Short-Term Access
    Operating leases offer access to an aircraft for a specified term, allowing you to adapt to changing needs and technological advancements without long-term commitments.
  • 2
    Reduced Financial Burden
    Leasing an aircraft avoids the large upfront capital expenditure required for purchasing, allowing companies to manage their cash flow more effectively and allocate funds to other strategic investments.
  • 3
    No Depreciation Costs
    The lessee does not bear the depreciation costs of the aircraft, as ownership remains with the lessor. This helps the lessee avoid the financial impact of asset depreciation.
  • 4
    Tax Benefits
    Lease payments are typically considered operating expenses and can be fully tax-deductible, offering potential tax advantages for the lessee while keeping the aircraft off the balance sheet.

Financing Simulation Request

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