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.