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Aircraft Financing: Airfleet Capital
built 632 days ago
Aircraft Financing lease is a type of lease which the lessor is considered to be the legal aircraft owner, but the risk and benefit are actually transferred to Airline Company. A finance lease actually combines the two functions of capital financing and property financing. Once the aircraft is mortgaged, insured and lease interest transferred, ICBC can offer service to lessor for aircraft purchase either under overseas or domestic finance lease, or finance Airline Company to acquire new aircraft through structural finance.
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AirFleet Capital offers loan and lease financing for general and commercial use aircraft ranging from $10,000 to over $45,000,000 and has developed financing programs for both manufacturers and dealers. AirFleet Capital developed a program with Beechcraft to offer factory lease programs for new Bonanza, Baron, and King Air aircraft. AirFleet Capital is currently teamed with Mooney through Mooney Capital to offer creative finance programs for buyers of new Mooney aircraft, and with Piper through New Piper Financial Services to offer creative finance programs for buyers of new Piper aircraft. In addition AirFleet is now recommended by the EAA for aircraft financing for its membership.
Financing aircraft or refinancing your current debt can free up cash for working capital. Financing appeals to businesses with longer equipment needs and builds equity with every payment. Loans are tailored with flexible payment terms to match a business's budgetary needs and goals.
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The Center Capital General Aviation Equipment Financing Division is a nationwide, commercial aircraft finance company that lends exclusively to the aviation industry. Center Capital offers low cost aircraft loans for all types of fixed wing and rotor wing--jet, turboprop, and piston--aircraft.
On the other hand, several aircraft executives had pointed out that leasing, not borrowing, was the normal way to finance aircraft. Lease payments can be tailored to suit the lessee's cash flows and provide up to 100% financing. A further advantage of leasing was that the lease payments were fully tax deductible, while on a loan only the interest, and not the principal, was deductible. On the other hand, if Taca was not the owner of the planes, the company could not take advantage of depreciation (for this kind of equipment, depreciation over over 10 years or more was normal). Hence it seemed that the technique worked best where the lessor could take greater advantage of accelerated depreciation than the user of the aircraft. One prominent provider of such lease finance was GE Capital Aviation Services, whose web page provided an overview of several different ways of leasing a fleet (Appendix 1).
AirFleet Capital has teamed with EAA to provide members with exceptional financing options for Certified Light Sport Aircraft. AirFleet Capital understands the importance of Light Sport aircraft in aiding the growth of general aviation, and getting more people in the left seat.
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