Ultimate Guide to Helicopter Financing

airplane financing

Last Updated on March 12, 2024 by admin

There are so many reasons to buy or lease a helicopter for your business. However, it isn’t an easy task to get the airplane financing for it. Helicopter financing is the most common concern of the process, therefore you should know how exactly the process works. In this guide, we have shortlisted all the details you need to know if you are looking to pursue the option.

How Does Financing Work For Helicopters?

This section is dedicated to how exactly the financing works. In order to get approved for helicopter financing, there are several steps that you have to go through. Now, remember to figure out the purpose you are buying it for. Because some companies only provide airplane financing for part 91 (private), or part 135 (commercial) use. There are very few companies that will offer both types. Furthermore, some financing organizations also put the age limit on the helicopters they will finance. For instance, it could be restricted to 20 or 25 years.

What Will Be The Initial Process?

Typically, the first step is to fill out the form. In this form, you will be asked to provide the customary information like the borrower’s name and address. In addition to this, you’ll also need to mention the details about the helicopter, like its age, model, etc. Not only this, but you’ll also have to specify the amount of loan you need to buy or lease the helicopter. The applicants also need to attach financial information with the form. It includes,

  • Personal financial statements
  • W-2s details for almost last two years
  • ID card, etc.

However, keep in mind, these requirements vary with each aircraft financing company. So, ask them about the documents they require before applying. Once, all these terms are figured out, your application will now be consider for the underwriting process.

Loan Approval Terms

After your application is considered for the underwriting process, the company might ask you some more questions about the missing documents they need. Once, all the details are sorted out, they will finalize the aircraft loan rates. Later, they will send the approval letter. Usually, this process is completed in under a week, if you have applied for the less costly helicopter. However, for more expensive aviation, it can take much longer.

The Down Payment & Other Terms

The down payment for aviation is usually between 10-25%. However, it can vary depending on the credit score. And, when it comes to the loan term, you can expect the time of 10 to 15 years with an interest rate of around 4-6.5%. No matter, what terms you agree on, the helicopter will be considered as collateral.

The Post-Approval Process

Lastly, you’ll receive a checklist that will have the purchase agreement along with all the other documents. Furthermore, if you want to register your helicopter in a business, you’ll also have to provide the relevant company documents.

Now, you can close the process. During this time, you’ll execute the documents to complete the transaction.

Now, that you have understood the process, you can start looking for aircraft financing for your purchase. You can check out the terms at Air Fleet Capital and apply to fulfill your dream of getting business aviation.

Read More: Should You Seek an Alternative Financing or Venture Capital Option to Boost Working Capital?

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Sophia Anderson is a finance writer and blogger with a passion for helping people improve their financial literacy. With over 5 years of experience in the finance industry, Sophia has worked with individuals, families, and small businesses to provide financial advice and guidance. Her expertise includes budgeting, saving, credit management, and debt reduction. Sophia is dedicated to breaking down complex financial concepts into easy-to-understand language and empowering her readers to make smart financial decisions. She is a frequent contributor to financial publications and has written extensively on topics such as personal finance, investing, and financial planning. Sophia's mission is to help people take control of their finances and achieve financial security and freedom. When she's not writing, Sophia enjoys hiking, practicing yoga, and reading personal finance books.