Many start-up entrepreneurs running their businesses in the aviation sector might want to buy their own aircraft fleet for commercial operations. This enables them to meet their customers’ demand of providing very good service to them. With time, they can outperform their nearest competitors in the market to gain a competitive edge and establish their airlines in the market. Unfortunately, they might not have the necessary cash-in-hand to make an outright purchase of these business assets. This is why many of them choose to resort to debt financing to acquire the aircraft models they want.

What should entrepreneurs know about pre-approved aircraft loans?

State-up entrepreneurs need to understand most commercial banks do not deal in offering aircraft loans. The officials of these banks regard these lending schemes to be risky ventures. They are likely to suffer bad debts if the borrowers fail to make their repayments on time. Fortunately, many other corporate financial lenders will provide them with pre-approved aircraft loans.

However, in order to obtain the above loans, interested parties need to be aware of the following eligibility conditions of these lending schemes before applying:

These entrepreneurs should even be willing to provide the lenders certain important documents. These include copies of audited financial statements on their personal finances and assets for the last three years. Moreover, they need to ensure a qualified Certified Public Accountant (CPA) to attest, stamp and sign the documents. Only then can they prove their financial stability to the lenders.

Procedure

Entrepreneurs need to prepare a budget according to their current financial situation. This is the sum of money they will spend on the aircraft acquisition. They then need to approach a corporate lender who is willing to finance their aircraft purchase venture. After they do so, they should:

Pre-approved aircraft loans enable start-up entrepreneurs to acquire new aircraft to provide better services to their customers. However, they should approach the right corporate lender to finance the purchase deal. This financier should have a reasonably good market reputation and experience in dealing with these lending schemes. Moreover, its eligibility requirements and other conditions should be acceptable to the entrepreneurs. Above all, the lender should charge competitive interest rates and favorable repayment options to these companies so that they can apply for the loans without tensions.