Aircraft loan officers review and consider many factors when determining the credit worthiness of applicants. When a potential customer contacts Banterra Bank with questions about an aircraft loan, they will communicate directly with knowledgeable and highly qualified aircraft lenders who help navigate the credit process in the most efficient manner. The credit application is the first step in the aircraft lending process. It is anticipated that applicants have a quality credit score. Additional credit history information is reviewed that can include recent credit inquiries, credit card accounts and overall reported debt.
The purpose of a personal financial statement (PFS) is to verify applicant’s assets, liabilities, and net worth. The PFS should indicate liquidity (cash reserves – bank and brokerage accounts), along with total outstanding credit obligations with their corresponding monthly debt payments. Underwriters review and confirm debts indicated in the applicant’s credit bureau report with those on the PFS to confirm there is no double reporting of a same debt. Underwriters also check for any additional liabilities not reported on the credit bureau. Federal tax returns, both personal 1040’s and business tax returns, are often times reviewed during the loan application decision process. Upon final analysis and income determination, underwriters can accurately calculate the debt-to-income ratio (DTI) and or debt service coverage (DSC) of applicants.
What You'll Need for Your Aircraft Loan Application
By gathering the below information prior to applying for an aircraft loan, you will be able to speed up the application process.
- Have a recent personal financial statement completed.
- Personal tax returns and business tax returns (if self-employed) the last two years.
- Obtain current bank and brokerage statements.
- Aircraft specifications or a link to the listing if an aircraft has been selected.
Many factors are considered in making a credit decision. These include include, but are not limited to, credit bureau analysis and history, net worth of individual and business if applicable, liquidity soundness, total outstanding debt(s) and payment(s) due, and asset quality of collateral.
To learn more about the loan process, explore our frequently asked questions page, or contact us with any specific questions.
August 16, 2023 by Banterra Aircraft Finance
