When shopping for aircraft financing, there are many questions one should ask each prospective lender to ensure you’ll be receiving not only industry competitive interest rates, but also knowledgeable, professional advice and service from experienced aviation lenders.
Direct lenders in most instances are banks that applicants work directly with versus loan brokers (non-banks) that have affiliate relationships with a bank or several banks.
Questions to ask lenders not only include the standard interest rate and term information but also it is recommended to ask the following:
- Are there any application fees and or points?
- Any age restrictions on aircraft?
- Can lender finance Light Sport or Experimental Aircraft?
- What type of credit documentation is required to apply?
- If the word “bank” does not appear in lender’s company name, what bank(s) will see credit info?
- Are any of the employees active pilots and or aircraft owners?
- Will numerous credit bureau inquiries be pulled if dealing with a loan broker?
- How long does the credit process take?
- Are credit pre-approvals available and if so, rate lock available? Expiration?
- Can you register the aircraft in an LLC or corporation?
- Any appraisal costs and how are aircraft values determined?
- Any issues with leasebacks or charter?
- Once approved, how long to close?
- What is the closing process?
- What are the closing costs? Title and escrow fees?
- Does lender hold loan in portfolio and service account?
- What type of options are available for repayment, i.e. Auto Debit, Invoicing, Online payments?
- Any early payoff adjustments or penalties?
Prospective applicants will feel comfortable directly working with the aviation professional staff at Banterra Bank as we are the actual bank that underwrites transactions internally or through one of our exclusive affiliate banks and have several highly experienced airmen on staff ready to answer any of your questions.
Banterra Aircraft Finance offers financing solutions for both general aviation and business aircraft for purchases, airplane refinancing, engine overhauls, and avionics upgrades. Give us a call us at 888-254-5731.