aviation finance

NAFA member, Adam Meredith, President of AOPA Aviation Finance Company, discusses the challenges of aircraft closings during the Coronavirus pandemic.

Unlike real estate, where the exchanged property does not move, the challenge with closing on an aircraft is that eventually it must be flown to its new home. It’s a rare transaction where buyers purchase an airplane from their home airfield. Therefore, how to legally move the aircraft is one major concern for buyers during the coronavirus pandemic. Another is how to get a pre-buy inspection done.

First, there is the sticky problem of getting an aircraft inspected. It’s not clear whether maintenance and repair shops are currently open to perform pre-buy inspections, or whether their employees can even report to work. Some states have not deemed aviation techs “essential.” What jobs are deemed “essential,” how, and by whom such job designations will be enforced remains up in the air. Even if aviation techs are, parts suppliers might not be. That means needed parts may not get delivered. In normal times, a closing might take 30 days. In these abnormal times, plan on the process stretching to 45 days or more.

Beyond that, is it legal for a ferry pilot or the new owner to fly an airplane from the airport where it is hangared to its new home base?  State laws vary on the subject. How complicated it will be to transport the aircraft may depend on factors like the route of flight and the number of states involved. Is the airplane going from California to Maine? Or from Wisconsin to Indiana? One has to ask oneself, “Am I going to have a challenge from this state?” Other questions follow, including, “Which governing body would enforce such a challenge — state or federal?” “Is it within FAA or state jurisdiction?” None of that is easy to navigate.

If you can imagine the difficulty of flying from one European country to another and having to deal with the balkanized ATC system there, then you have some idea of the current complexity surrounding moving an aircraft across state lines during this pandemic. At AOPA Aviation Finance, (“AAF”), our advice is to call AOPA’s Legal Services to get better clarity on your specific situation.

That is a great benefit of AOPA, having multiple resources all in one place. This complex situation is the perfect time to tap into them.

Great advice. Great rates. From helpful and responsive reps you can trust. Three good reasons to turn to AOPA Aviation Finance when you are buying an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (800.627.5263), or click here to request a quote.

This article was originally published by AOPA Aviation Finance Company on April 30, 2020.

FOR IMMEDIATE RELEASE

EDGEWATER, Md. – Nov. 11, 2019 – National Aircraft Finance Association (NAFA) is pleased to announce that Wings Insurance has recently joined its professional network of aviation service providers. 

“NAFA members form a network of aviation finance services who diligently and competently operate with integrity and objectivity throughout the world. We’re excited to welcome Wings to our growing organization as we head to our 50th anniversary,” said Jim Blessing, president of NAFA.

Wings Insurance is one of the largest aviation risks-only insurance brokers in the country, maintaining five office locations in the USA (Daytona Beach, Cleveland, Minneapolis, Chicago and Denver) and a customer base of over 2500 clients. The company’s aviation insurance reach encompasses every state in the USA along with global insurance placements in most EU, Middle East and Asian locales.

Wings Insurance began in 1984, specializing in aviation insurance on a regional level. Since inception, the business has experienced a steady rate of growth, and almost 35 years later they offer global insurance solutions through a world-wide network of solution providers with over 100 years of combined aviation insurance experience.

With their hands-on background in both the aviation and insurance industries, Wings has the resources to help their clients make informed decisions, whether it involves purchasing, financing, tax, legal, transitions or recurrent training. The company aims to provide the best coverages at the lowest price point available and solidify long-term partnerships through responsive customer service, creativity, and integrity. Wings is also one of only three International Aircraft Dealers Association (IADA) endorsed insurance brokerage firms. 

Much like NAFA, Wings Insurance is dedicated to the highest quality of service to their clients and business associates – delivered with a sense of friendliness and individual pride. Wings and NAFA are committed to fostering industry knowledge and leading-edge technology throughout the aviation industry.

For more information about Wings Insurance, visit nafa.aero/companies/wings-insurance.

About NAFA:  

The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit NAFA.aero.

NAFA Announces Dawn Hudson as Keynote Speaker for 49^th Annual Conference

FOR IMMEDIATE RELEASE

EDGEWATER, Md. – November 11, 2019 – The National Aircraft Finance Association (NAFA) is pleased to announce that Dawn Hudson will be the keynote speaker at their upcoming 49^th Annual Conference, to be held April 28^th through May 1^st, 2020, at The Meritage Resort in Napa Valley, California. Hudson will be presenting to an audience of aviation industry and finance experts with a global reach – supporting or enabling the financing of general and business aviation aircraft throughout the world. 

Widely recognized as one of the most important female business executives of the past decade, Dawn Hudson is the former Chief Marketing Officer at the National Football League and the former President and CEO of Pepsi Cola North America. She has led an impressive career spanning high-level posts in media, retail, consumer goods, consulting, and healthcare at some of the biggest corporations in the world. 

Hudson’s work has been focused on revolutionizing and strengthening brands’ positioning and marketing, tapping into culture change as fuel for innovative business strategies, and championing inclusive leadership and diversity. She has been recognized as the “Most Vital Leader in Tech, Media, and Marketing” by AdWeek – topping a list of 50 industry titans – and twice as one of Fortune magazine’s “50 Most Powerful Women in Business.” 

Dawn Hudson is an electric speaker – as an advocate of smart reinvention and growth, she shares insights on turning adversity into an advantage, building a global presence, and why in today’s business climate innovation must be central to everything from distribution to selling stories to human capital management. Hudson speaks about the power of brand, how to embrace change and drive innovation, and the importance of strong and inclusive leadership.

The 49th Annual Meeting of the National Aircraft Finance Association will bring together the most active aircraft lenders in North America and worldwide to network and discuss issues topical to the industry, including: aviation regulatory changes, banking system regulatory changes, updates on new aircraft entering the marketplace, and other issues pertinent to aircraft buyers and their support systems. 

“Dawn Hudson is an amazing mind with sharp insights into driving innovation, leadership and inclusion for successful business practices, and we are thrilled to have her speaking to our members and other attendees at the upcoming conference,” said Jim Blessing, President of NAFA. Hudson will present on “Inclusive Leadership” for the approximately 250 attendees on Thursday, April 30^th, 2020. Additional details and time will be determined at a later date – visit NAFA.aero/events for information.

For more information about Dawn Hudson, visit leadingauthorities.com/speakers/dawn-hudson.

About NAFA: 

The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit NAFA.aero.

FOR IMMEDIATE RELEASE

FORT LAUDERDALE, Fla. – November 4, 2019 – National Aircraft Finance Association (NAFA) is pleased to announce that NBT Bank recently joined its professional network of aviation lenders. 

“NAFA members form a network of aviation finance services who diligently and competently operate with integrity and objectivity throughout the world. We’re excited to welcome NBT Bank to our growing organization as we head to our 50th anniversary,” said Jim Blessing, President of NAFA.

NBT Bank offers personal and business banking, commercial banking and wealth management services from locations in seven states, including New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut and through its online and mobile channels. The bank added small aircraft financing to its array of lending options in 2019 and hired Douglas N. Place, Jr. as vice president of Aircraft Financing to lead their efforts. Place has nearly 15 years of experience in the financial services industry, including 10 years in aviation financing. He is also a private pilot and a member of the Board of Directors for the Greater Lawrence, MA Airport Authority.

“NBT Bank is dedicated to building strong relationships and delivering high-quality service to our customers,” said Place. “I am proud to be a part of the NBT team and to deliver small aircraft financing as an enhancement to the bank’s business options. We’re very excited to join NAFA and foster long-term, mutually-beneficial relationships throughout the aviation finance community.”

Established in 1856, NBT Bank is headquartered in Norwich, NY with its parent company, NBT Bancorp Inc. NBT Bancorp Inc. had assets of $9.7 billion as of September 30, 2019 and is traded on the Nasdaq Global Select Market under the symbol NBTB.

NBT Bank appeared on the Forbes 2019 World’s Best Banks list as the top-ranked bank in Maine,  New Hampshire, New York and Vermont. Of the 60 U.S. banks on the list, NBT Bank was ranked #14. Forbes surveyed more than 40,000 customers around the globe and rated banks on overall recommendation and satisfaction as well as five subdimensions (trust, terms and conditions, customer services, digital services and financial advice).

For more information about NBT Bank, visit nafa.aero/companies/nbt-bank.

About NAFA:  

The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit NAFA.aero.

FOR IMMEDIATE RELEASE

EDGEWATER, Md. – October 18, 2019 – National Aircraft Finance Association (NAFA) is pleased to announce that Elevate Jet recently joined its professional network of aviation lenders. 

“NAFA members form a network of aviation finance services who diligently and competently operate with integrity and objectivity throughout the world. We’re excited to welcome Elevate Jet to our growing organization as we head to our 50th anniversary,” said Jim Blessing, President of NAFA.

Elevate Jet, a subsidiary of Elevate Holdings, is a trusted and professional single-source set of solutions for private jet owners and flyers, offering aircraft management, corporate shuttle, consultancy, and advisory services. The company has been serving private aviation with professional services since 2003, advising private flyers concerning their aviation interests.

Elevate is a premier aircraft management company founded on the growing need for boutique style aircraft management. The company is designed to align with their clients’ mission profiles, providing highly customized services to private aircraft owners and flyers. Their experienced aviation team has a wealth of industry knowledge and intelligence that ensures exemplary levels of bespoke service in aircraft management and aircraft consultancy. 

For more information about Elevate Jet, visit nafa.aero/companies/elevate-jet-llc.

About NAFA:  

The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit NAFA.aero.

FOR IMMEDIATE RELEASE

EDGEWATER, Md.– September 16, 2019 – National Aircraft Finance Association (NAFA) is pleased to announce that Wintrust Commercial Finance (WCF), a division of Wintrust Asset Finance, Inc., has recently joined its professional network of aviation lenders. 

“NAFA members form a network of aviation finance services who diligently and competently operate with integrity and objectivity throughout the world. We’re excited to welcome Wintrust to our growing organization as we head to our 50th anniversary,” said Jim Blessing, president of NAFA.

WCF is Wintrust’s Texas-based, equipment-focused financing group offering sophisticated loan and lease products to companies throughout the U.S. Within three years of the company’s founding, WCF funded in excess of $1 billion in equipment-secured loans and leases and has continued to grow into one of the largest equipment financing companies in the country.

WCF is backed by Wintrust, a more than $33 billion financial holding company that provides a wide variety of financial services for both personal and business banking needs. 

WCF provides an array of tailored aircraft finance products including loans, operating leases, and non-tax leases, offering terms up to 10 years with amortizations up to 25 years with a target transaction size of $5 million to $25 million.

Much like NAFA, WCF cares about the community and the individuals in it, offering the resources and tools of a large company with the personal attention and customer focus of a small business. Wintrust and NAFA are committed to fostering solid customer service through the aviation industry.

“Wintrust Commercial Finance is excited to join NAFA as a contributing member,” said Craig Ault, senior vice president, national sales manager. “This partnership will help us better serve our customers in the aviation industry.”

For more information about Wintrust Commercial Finance, visit nafa.aero/companies/wintrust-commercial-finance or wintrust.com/wcf.

About NAFA:  

The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit NAFA.aero.

 About Wintrust

Wintrust is a financial holding company with assets of approximately $33 billion whose common stock is traded on the Nasdaq Global Select Market. Built on the "HAVE IT ALL" model, Wintrust offers sophisticated technology and resources of a large bank while focusing on providing service-based community banking to each and every customer. Wintrust operates fifteen community bank subsidiaries with over 160 banking locations located in the greater Chicago and southern Wisconsin market areas. Additionally, Wintrust operates various non-bank business units including business units which provide commercial and life insurance premium financing in the United States, a premium finance company operating in Canada, a company providing short-term accounts receivable financing and value-added out-sourced administrative services to the temporary staffing services industry, a business unit engaging primarily in the origination and purchase of residential mortgages for sale into the secondary market throughout the United States, and companies providing wealth management services and qualified intermediary services for tax-deferred exchanges.

FOR IMMEDIATE RELEASE

EDGEWATER, Md. – Aug. 28, 2019 - National Aircraft Finance Association (NAFA) is pleased to announce that Cassels Brock & Blackwell LLP (Cassels Brock) has recently joined its professional network of aviation lenders. 

“NAFA members form a network of aviation finance services who diligently and competently operate with integrity and objectivity throughout the world. We’re excited to welcome Cassels Brock to our growing organization as we head to our 50th anniversary,” said Jim Blessing, President of NAFA.

Cassels Brock is a Canadian law firm focused on serving the transaction, advocacy and advisory needs of the country’s most dynamic business sectors. As one of the largest business law practices in Canada, they serve multinational, national and mid-market entities.

The firm’s multidisciplinary aviation practice has the expertise and experience to help clients achieve their goals in complex national and multi-national aviation law and aircraft finance transactions, including personal and business aviation needs. Cassels Brock designs, implements and manages the transaction scenarios that best match clients' goals and the available legal framework (working within the international law, common law and civil law systems). 

Cassels Brock is dedicated to serving the needs of both the Canadian and International aviation industries. They can advise, negotiate and draft all relevant documentation in English and French, and have a working knowledge of Spanish, enabling them to provide enhanced support to international clients.

The firm prides itself on understanding the unique business and legal challenges clients face along with the intricate business and regulatory environment in which they operate. Their clients include high net worth individuals, aviation manufacturers and aviation financiers, including aircraft and engine manufacturers, aircraft and engine leasing companies and advisors, government export credit agencies, international banks, hedge funds and other investors.

Much like NAFA, Cassels Brock provides timely, responsive, proactive and practical advice and joins NAFA in exceeding expectations in the aviation industry through teamwork and strong leadership. 

For more information about Cassels Brock & Blackwell LLP, visit nafa.aero/companies/cassels-brock-blackwell-llp.

About NAFA:  

The National Aircraft Finance Association (NAFA)is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit NAFA.aero.

FOR IMMEDIATE RELEASE

EDGEWATER, Md. – Aug. 1, 2019 –The National Aircraft Finance Association (NAFA) is pleased to announce that global law firm Greenberg Traurig, LLP has joined its professional network of aviation service providers. 

“NAFA members form a network of aviation finance services who diligently and competently operate with integrity and objectivity throughout the world. We’re excited to welcome Greenberg Traurig to our growing organization as we head to our 50th anniversary,” said Jim Blessing, president of NAFA.

Greenberg Traurig’s Business Aviation Practice represents owners and operators of business aircrafts, financial institutions, leasing companies, corporations, airlines, and other aviation-related businesses on a variety of finance, leasing, commercial, and related corporate matters. The team is skilled in advising both domestic and foreign airlines, lessors, and lenders on aircraft, engines, and parts financings; purchases and sales of aircraft and aircraft portfolios; equipment leasing matters; as well as airline investments and other aviation-related commercial and operational matters. Attorneys capitalize on the firm’s global resources by working closely with restructuring, tax, private wealth, antitrust, governmental affairs, intellectual property, environmental, and labor and employment colleagues to develop multifaceted strategies that meet clients’ aviation needs.

Business aviation attorney Edward Kammerer, a longstanding contributor to and recent board member of NAFA, recently joined Greenberg Traurig as a shareholder. He advises the business aviation community on a wide range of transactions and issues, with a special focus on aircraft acquisitions and finance. With 40 years of experience, he represents major corporations, mid-sized companies, family offices, corporate executives, entrepreneurs, and business owners, helping them to acquire, operate, finance, and sell private aircrafts. Kammerer has previously served as in-house counsel for three leading equipment finance companies, including affiliates of two major banks and one leading insurance company. He had responsibility for the development of standard form financing documents and approved documentation of inbound and outbound syndicated secured financings. Kammerer is admitted in New York, Rhode Island, and Connecticut. 

About Greenberg Traurig: Greenberg Traurig, LLP(GT) has more than 2,100 attorneys in 41 offices in the United States, Latin America, Europe, Asia, and the Middle East. GT has been recognized for its philanthropic giving, diversity, and innovation, and is consistently among the largest firms in the U.S. on the Law360400 and among the Top 20 on the Am Law Global 100.  Web: http://www.gtlaw.com Twitter: @GT_Law.

About NAFA: The National Aircraft Finance Association (NAFA)is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; improving the industry's service to the public; and providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit NAFA.aero.

FOR IMMEDIATE RELEASE

EDGEWATER, Md. - July 29, 2019 - National Aircraft Finance Association (NAFA) is pleased to announce that Aero Asset has recently joined its professional network of aviation lenders. “NAFA members form a network of aviation finance services who diligently and competently operate with integrity and objectivity throughout the world. We’re excited to welcome Aero Asset to our growing organization as we head to our 50th anniversary,” said Jim Blessing, President of NAFA.

Aero Asset is a groundbreaking international helicopter sales brokerage with decades of aircraft trading expertise. The company was founded by three well-established aircraft sales professionals: Emmanuel Dupuy, William Sturm and Valerie Pereira. Combining 70-plus years of experience, Aero Asset is a world class broker and dealer of preowned helicopters across configurations and weight class.

Valerie Pereira pilots market research. The growing sales team is lead by Emmanuel Dupuy, William Sturm & Francisco Camoes.  

Headquartered in Toronto, Canada, the company promotes its knowledge of helicopter markets by releasing the Preowned Helicopter Market Trendsevery quarter. This in-depth market report ranks preowned twin-engine markets by liquidity, tracks trading values and breaks down sales & supply over the quarter and year on year. 

Aero Asset’s Preowned Helicopter Market Trends Q2 report is out now and can be downloaded here: 

https://aeroasset.com/pre-owned-market-trends-2019-q2.html

Aero Asset applies big brokerage business practices with a customer-first approach to helicopter sales. Much like NAFA, Aero Asset is passionate about aviation and promoting accurate information for fair and safe transactions. Aero Asset and NAFA are dedicated to the aviation industry and its evolution – setting the highest standards for service and expertise throughout.  

For more information about Aero Asset, visit nafa.aero/companies/aero-asset.

About NAFA:  

The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit NAFA.aero.

FOR IMMEDIATE RELEASE

EDGEWATER, Md. – September 1, 2018 - National Aircraft Finance Association (NAFA) is pleased to announce that Lending Associates has recently joined its professional network of aviation lenders. “NAFA members proudly finance - support or enable the financing of - general and business aviation aircraft throughout the world, and we’re happy to add Lending Associates to our association,” said Ford von Weise, President of NAFA.

Lending Associates is a provider of financing solutions for recreational and commercial aircraft acquisitions, working with a large network of quality lenders to ensure the most competitive loan rates. With years of experience, their team of experts are available to answer client questions throughout the process, helping consumers and industry professionals alike navigate today’s complex financing process. 

Lending Associates matches the best lender to their clients’ specific financing needs, maintaining the utmost privacy and confidentiality. Their loan specialists work to design a financing program to best meet each unique situation. From the initial consultation to loan closing and ongoing servicing of the loan, the company is committed to the needs and goals of the client.

"Lending Associates is proud to join NAFA in its efforts to support private aviation. From what I have seen, the members of this association have a passion for aviation and a history of moving the industry forward from all aspects, not just finance," stated Grant Smalling, President of Lending Associates. 

Much like NAFA, Lending Associates is dedicated to fostering quality, professional service throughout the aviation finance industry. Lending Associates and NAFA promote excellence in aircraft finance through their commitment to the consumer’s goals. 

For more information about Lending Associates, visit https://www.lending-associates.com/.

About NAFA:  

The National Aircraft Finance Association (NAFA) is a non-profit corporation dedicated to promoting the general welfare of individuals and organizations providing aircraft financing and loans secured by aircraft; to improving the industry's service to the public; and to providing our members with a forum for education and the sharing of information and knowledge to encourage the financing, leasing and insuring of general aviation aircraft. For more information about NAFA, visit www.NAFA.aero.

NAFA member and President of AOPA Aviation Finance Company, Adam Meredith, shares what you need to tell your finance broker to save you money.

Our goal is to save you as much money in interest rate and loan fees as possible. In order to best do that we need answers to the following 5 questions.

How will you own it?
Who is going to own the plane? Is it going to be a sole-purpose limited liability company you establish? That information is needed in advance to correctly fill out the loan documentation.  Are you going to have multiple co-owners? Some lenders won’t even deal with an aircraft that has multiple partners, others limit how many partners they’ll accept. We don’t want to waste our time or yours by contacting lenders who could be eliminated in advance.

How will you use it?
If the aircraft is going to be used to generate revenue, there are specialized lenders that prefer these types of loans and are more willing to lend money. Revenue generating aircraft are often referred to as “essential use” aircraft. Some of these include aircraft used in charter operations, helicopter tours, pipeline patrol, and parachute jumping. In general, if your plans entail essential use on your aircraft, there may be fewer lenders willing to give you a loan. Tell us right away if that is what you intend. Likewise, if you want to use the aircraft for flight training, in a Flying Club or on leaseback, these all also fall into the “essential-use” category and thus require specialized options.

How long will you keep it?
How long do you plan to keep it? Most of our customers have their aircraft less than 4-5 years. If that is your intent, you may want to consider an adjustable-rate loan or vs. a fixed-rate loan. An adjustable rate loan can save you money. Here’s an example: let’s say you want a $500,000 loan. If you went with an adjustable-rate loan (fixed for the first five years, then adjusting annually) you could save nearly $14,000 in interest over the course of those five years compared to a 20-year fixed-rate loan.

Any past problems?
Tell us up front if there have been any past credit issues. Were there past disputes or bankruptcies? Insurance companies using heavy-handed tactics? Don’t just hope it won’t be uncovered during the course of the loan application, because it will eventually be uncovered. You’re far better off having the discussion of any past problems at the start of the application process rather than explaining after the fact.

How do you make your money?
We need to be able to explain to a lender what your cash flow looks like. The end-of-year results may be good, but did the cash come in lumps? Is it dependent on the seasons, or whenever you happen to buy and sell a company? Do you get paid a commission only when you make a sale? Do you plan to retire? Many of our members are small-business owners who may have irregular cash flow but high annual income. It’s helpful if we know in advance so we can make the best possible case to a lender.

Considering aircraft ownership? AOPA Aviation Finance will make your purchase experience as smooth as possible. For information about aircraft financing, please visit www.aopafinance.com or call 1-800-62-PLANE (75263).

This article was originally published in AOPA Finance on August 1, 2018. 

NAFA member, Adam Meredith, president of AOPA Aviation Finance Company, is an aircraft finance professional with more than 15 years lending, small business management and customer service experience. Adam is a commercial pilot with multi-engine and instrument ratings.  Ask Adam!

ADAM ANSWERS:

KARL:  I have a loan with Bank of America at over 6%.  This originated in 2008.  Is the interest rate better now & what are my chances of getting a lower rate & would it be feasible (worthwhile)?  It is a 20 year loan.

ADAM: Rates are going to be dependent on the loan amount and term of the refinance you are considering. We have a number of options that could potentially lower your rate below 6% and keeping it financed over 15-20 years. For example, a loan balance between $50,000 and $75,000, typical structures are 5.5% amortized over 15 years. If your current balance is over $75,000 then we can fix the rate over a 20 year amortization. Currently we are seeing fixed rates as low as 4.65%. The specific age and type of aircraft may also factor in to the final loan structure. Our regional account executives would be happy to discuss the best course of action to refinance your aircraft.

Example: Assuming you financed $125k in 2008 (20 yr term and 6%), your current payment should be $895/mth and you should still owe approximately $91k. If you were to refinance that loan today, your interest rate would be 1.2% less and your payment would drop to $595/mth! 

KAREN: When I am ready to take the plunge, what documentation would I need to provide in order to apply for an aircraft loan from AOPA?  I assume the usual stuff like bank docs?

ADAM: Aircraft lending is a bit different than most other loan products you are likely used to. The process and documentation is similar to that of a mortgage. Along with our signed credit application, our lenders require two years of personal tax returns and W2s. A current paystub would also be required. If you are self-employed or a business owner, additional business financials will be needed. A comprehensive list of required documentation based on your income situation can be found on our website.

Have questions for Adam? He is happy to answer them. Submit your questions here.

Great rates. Great terms. Helpful and responsive reps. Three good reasons to turn to AOPA Aviation Finance when you are buying an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (75263) or click here to request a quote.

Have a specific aviation finance question you would like to see in future articles? Submit it here, and it may be highlighted in an upcoming content piece.

This article was written by Adam Meredith and originally published in AOPA Finance on June 20, 2016.