Aviation Mortgage for a Flying School

Posted On: 27 September 2019 Industry: Aviation

Finance Need: A well-established Flying School was looking to add to their fleet, requiring finance at a total of £86,000.

 

The Situation: With eight years of business behind them, the flying school wanted to add two additional landplanes to their fleet, believing they would increase interest in their school, ultimately increasing sales. Ideally, they wanted to finance both assets over seven years.

 

What Arkle Did: This proposal was received from one of our Brokers looking to support a long-term Customer. The Credit Team could see the flying school had experienced difficulties in the past, however that didn’t stand in the way of the asset’s strength. The Underwriter was able to speak to the Director of the Flying School to discuss their business plan further and agreed that the additional assets would increase revenue and it was a sound investment.

 

With the assets’ combined age being 99, acceptance would depend on a successful asset inspection and valuation being completed. Both came back clear and our Underwriter was able to confirm the acceptance with the Broker.

 

The Finance Solution: Although we were unable to support the seven-year requirement, the Credit Team offered the Customer a 5-year aviation mortgage with a balloon payment. For security, we requested a personal guarantee from the main shareholder.

 

Arkle Comment: With the years of experience our Underwriters have, they can see past figures on bank statements and accounts and get to grips with the Customer’s situation. In this scenario, our Credit Team saw the potential this Customer had and recognised and supported this sound business opportunity.

Like what you see? Contact us!
Fill in the form below and a member of our team will be in touch with you as soon as possible.

Get in touch

We'll never rent, sell or share your email address

CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

What we do with your data

All quote enquiries are held in the strictest confidence. We’re bound by the Data Protection Act 1998 – and as such take great care in ensuring all data you enter is secure. We do not pass your information on to third parties, except in cases where we have your express consent or where it is required to manage your asset finance arrangement. Please see our Privacy policy. If you’re not sure about all the information, you can contact us online, or call us on 01933 304899.

Related Blog Posts

7 Tips for Restoring or Upgrading a Light Aircraft

Restoring or upgrading a light aircraft can prove to be a great project to sink your teeth into.

How Environmentally Friendly are Commercial Drones?

Commercial drones, or Unmanned Aerial Vehicles (UAVs), have increased in popularity in recent years, and for many great reasons.  They have plenty of uses, making them a good choice for many differ

What Is An Aircraft Mortgage?

What is an aircraft mortgage, how does it work, and how can Arkle Finance help you to fund a new aircraft?