Finance Your Aircraft
Wilco Aviation Limited are working in partnership with an industry leading credit brokerage Buckley Aircraft Finance who are providing funding for the aviation industry.
Wilco has been working closely with Buckley Aircraft Finance to create finance packages for its aircraft that will provide a professional, tailored, cost effective and efficient service to its customers.
We have published a number of examples to give you some idea of what is achievable, however as the service is specifically tailored to meet your needs the permutations are many.
How Financing Your Aircraft works
Why Finance?
Aircraft when well maintained and looked after retain a high residual value, and this can be calculated within finance packages to reduce terms or monthly payments. If you are a business then acquiring a new aircraft with finance can be a highly tax efficient route and many costs can be tax deductible. Fundamentally as with many capital purchases, it allows you to retain your money in the bank whilst acquiring that essential aircraft.
How to Finance your aicraft
The tailored packages we are able to offer can be tailored specifically to suit your requirements, the length of term, deposit payment and residual value all play a part in giving you the bespoke finance product. The basic principles of finance with their advantages and disadvantages are below: –
Option 1 Aircraft Mortgage Without A Balloon Payment
The basic principles on this have remained unchanged for many years. You pay a deposit followed by a number of monthly instalments generally 1-7 years. There is a “document fee” with your first monthly payment to cover the finance company’s costs and the cost to register the aircraft mortgage with the CAA. With a credit sale agreement there is no “option to purchase fee” at the end, when the term is completed, you own the aircraft outright.
Advantages
The deposit can be small or large, the larger the deposit the smaller the monthly repayment.
Term duration to suit you from 1-7 years
At the end of the agreement, you own the aircraft outright
The loan is on the aircraft in the form of an aircraft mortgage registered with the CAA
A fixed rate of interest set at the time of signing
Acceptance
From initial enquiry to receiving the funds can take as little as 5 days Buckley Aircraft Finance with Wilco Aviation ensure a smooth transaction is taken care of.
Disadvantages
If you don’t keep up repayments your aircraft may be repossessed
Early settlement may incur an extra cost
Option 1 Aircraft Mortgage Without A Balloon Payment
The basic principles on this have remained unchanged for many years. You pay a deposit followed by a number of monthly instalments generally 1-7 years. There is a “document fee” with your first monthly payment to cover the finance company’s costs and the cost to register the aircraft mortgage with the CAA.
This is the same as Option 1 the credit sale agreement, except, a proportion of the balance to finance is saved until the end of the agreement which is payable in a lump sum. On some occasions the balloon payment can be up to 50% of the value of the aircraft, or, as low as you would like it to be.
Advantages
Lower monthly payment than a credit sale without a balloon
Minimum deposit required
Term duration to suit you from 1-7 years
At the end of the agreement and after the balloon payment is made you own the aircraft outright.
The loan is on the aircraft in the form of an aircraft mortgage registered with the CAA
A fixed rate of interest
Acceptance
From initial enquiry to receiving the funds can take as little as 5days
Buckley Aircraft Finance with Wilco Aviation ensure a smooth transaction is taken care of.
Disadvantages
If you don’t keep up repayments your aircraft may be repossessed
A personal guarantee may sometimes be required
Early settlement may incur an extra cost
Credit sale agreements with a balloon payment have the same APR% as a straight repayment agreement, however they cost more in interest charges due to the outstanding value of the balloon payment. This is because the interest is charged on the amount outstanding.
There will be a higher amount outstanding throughout a credit sale with a balloon payment, therefore even though the interest rate is the same, the amount of interest payable will actually be higher than if there was not one.
Wilco Aviation Limited are an introducer appointed representative of Buckley Asset Finance Ltd trading as Buckley Aircraft Finance. Our FCA number is 1000928. Buckley Aircraft Finance is a broker, not a lender and is authorised and regulated by the Financial Conduct Authority for credit broking. Finance subject to status. Terms and conditions apply. A guarantee may be required. Over 18’s only. The finance examples on this website are for illustration purposes. Real-time finance discussions must be made directly with Buckley Aircraft Finance.
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