Tired of waiting in that long line? A businessman that travels a lot? Packed planes? No privacy when it comes to traveling? Delayed flights? What a hassle indeed. These are just a few of the inconveniences you might encounter when traveling with commercial planes.
If you’re paying a lot of money in airline companies yearly, it might be a good option to buy your own jet for convenience and time management purposes. And what you need is the right jet financing company that provides you with easier transactions and great deals.
However, having your own jet greatly affects an individual’s lifestyle greatly. Even the ultra-rich expect their lifestyle to be costly after acquiring a jet of their own.
Life-Changing? How?
From the maintenance of the jet, hangarage, crew salary, aircraft insurance, taxes and registration fees, and direct operating costs. Everything just sounds so expensive that it would give you a migraine just by thinking about it.
That is why those already in the high net-worth status always look for the right and trusted financing companies to find great offers. Never throw your millions away in the blink of an eye without even scanning your new jet from inside out. It should cater to your needs for a long period of time.
The Price Tag
The cost of each jet depends on the size, number of passengers, and the distance it can fly. You should also know what you need and what characteristics you are looking for in a jet for it to properly serve its potential use. Here is the overview of jets that you might be interested in:
| Jet Size | Price | Number of Passengers |
| Light Jet | $2,000,000 – $8,000,000 | 4 to 8 passengers |
| Midsize Jet | $9,000,000 – $20,000,000 | 7 to 9 passengers |
| Super Midsize Jet | $16,000,000 – $32,000,000 | 8 to 9 passengers |
| Heavy Jet | $27,000,000 – $100,000,000 | 9 to 16 passengers |
| Turboprop | $2,000,000 – $8,000,000 | 6 to 8 passengers |
The Requirements
There may be a lot of aircraft financing companies that take great interest in your business but not the model that you want to purchase. There are various lenders that have different niches but may refuse with your acquisition that may fall outside of their expertise.
Just like all lenders, it is in one’s financing companies’ best interest to be highly insightful of who they grant jet financing to and how much they are going to lend the potential candidate. With that being said, just like home mortgage lenders, aircraft lenders have strict criteria when evaluating a borrower. They also take into account the age and model they are able to finance.
Here are important notes you should take into consideration if you want to finance a jet:
- Credit- your credit stability is one of the most important things that lenders tend to be very precise about. Aside from that, they also look into your characteristics and reputation.
- Net worth- this refers to the amount of money that you currently own.
- Debt-to-income ratio- when you apply for a loan, lenders extensively check your past and current financial status. They will be reviewing your debts and income ratio of the two that is one factor in determining if you qualify for the loan.
- Collateral- this refers to the assets that you owned and were able to pledge the loan.
- Your intent- it’s better if you disclose the intent of your reason for acquiring the aircraft. Any pending legislation can be an external factor that could affect the loan and the state of the economy.
Remember This!
Buyers that are interested in buying either new or used jets should make sure that they are from a team of aircraft lending professionals to assist them throughout the process. From sorting out all the requirements, insurance, and support once the purchase is already complete.