Credit Based Financing Options

Credit Based Financing Options

Conventional Aircraft Loans are offered with the following options;

1. Variable Rates

Aero Credit Corp has the capability of offering Variable Interest Rate Loans, (benchmarked to US Prime or LIBOR Rate Indices). This option can be appealing to the customer whose time horizon of aircraft ownership and/or aircraft financing needs are relatively short.

2. 3, 5 or 7 Year Balloon Loans

This program offers the comfort of a fixed interest rate for a period of time; however, the drawback to this type of loan is a large payment or balloon that is due at the end of the term. This balloon payment will typically require you to either sell or refinance your aircraft. The Balloon Loan is a good match for many aircraft owners, as few buyers retain ownership of the same aircraft for more than five years.

3. 20 & 25 Year Fixed

The twenty & twenty-five year term loans offer attractive fixed interest rates for the duration of the loan. This program is an excellent match for borrowers who want the security of a fixed interest rate, and because our financing programs have No Prepayment Penalties, you retain the flexibility to sell or refinance your aircraft at any time

4. Bridge Loans

A bridge loan allows you to purchase an aircraft with only the deposit as your Out-Of-Pocket Cost. With the exception of your deposit, Aero Credit Corp will essentially finance 100% of your new aircraft and hold both your new and old aircrafts as collateral. There is no time limit to sell your original aircraft. When it does sell, you would be required to pay down the loan to the equivalent of the 10% or 20% Down Payment you were approved for. However, you can apply as much (or as little) of the remaining proceeds as you prefer in paying down the original loan balance. At that point, you have a one-time window of opportunity to reset your monthly payment based upon a 20 and/or 25 year Amortization of the revised loan balance.

5. Progress Payment Loans

This program has been established specifically for our Epic Aircraft customers. Essentially, we work with you to secure a Prior Approval of a permanent loan for the finished aircraft. This Loan is originated at the inception of the build process and the interest rate is locked at that time. Once the customer has invested the equivalent of the Down Payment in his/her Prior Approval, funding of subsequent Progress Payments can be made as an advance or draw against the permanent loan.

6. No Down Payment - 100% Financing

This Program is available to customers with strong credit. Frequently, customers are best served by keeping their capital deployed in their business and/or personal investment portfolio and maximizing their liquidity and ROI. The No Down Payment 100% Financing Option is designed for this high net worth / high income customer.