Aircraft financing isn't just for airlines. Many business owners use private aircraft financing to get their own wings and stop sitting in airport terminals waiting for delayed arrivals and departures.
Some advantages to owning an aircraft for your business are:
- No need to go through rigorous airport security only to sit and wait in the terminal for your plane to board.
- Tax breaks for private aircraft financing.
- The ability to choose your destination and time frame without being at the mercy of an airline company.
Know the value of your aircraft for financing and insuranceGetting reasonable aircraft loan rates may depend on how your airplane is valued. Just like a home mortgage, your lender may require an appraisal on the aircraft you plan to buy or refinance. You also will need to know the value of your plane when applying for insurance.
Get the best private aircraft financing rates through a specialistHaving a good relationship with your local banker may prove valuable; however, you will need to know how to deal with the FAA, the risks and the tax benefits to your business. So check on aircraft financing rates through a company that specializes in aircraft finance.
Take advantage of the tax benefits when you apply for commercial aircraft loansThere are tax benefits to business and commercial aviation. Have your CPA research your tax status before applying for commercial aircraft loans because each state has its own standards for aircraft taxes. When your airplane is financed on a 20-year term, it can be depreciated on a five-year schedule. The finance fees, interest and maintenance also may be a tax deduction.
- Compare aircraft loan rates between reputable aircraft financing companies before applying.
- Have two years of tax returns, your clean credit history and your business and personal financial statements together before applying for airplane financing.