Aviation Finance

Aviation Funding Options

We offer aviation finance options for various types of aircraft, including light aircraft, helicopters, microlights, vintage aircraft, flight simulators, commercial drones, and hot air balloons. We understand that owning an aircraft involves more than just the purchase price, and our finance solutions can help cover the overall cost of ownership. At Smart Funding Solutions, we are committed to helping our clients achieve their aviation dreams with our funding options.

How Does it Work?

Here’s how the process of financing your dream aircraft works with us:

Apply for aviation funding

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How does it work?

Fill in our form​

A member of the team will be in touch to collect some basic information. This helps us understand the type of funding that would best suit your business.

We find the best funding for you

We use the information you provided to source the best funding options for you and your business using our panel of over 250 lenders.

We present your options

We’ll then present you will all of the funding options available to you and give you time to decide which one you would like to proceed with.

What is Eligible for Aviation Financing?

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We have extensive experience in the aircraft finance industry and have established strong relationships with our panel of lenders.

We offer a personalized service and can be involved in the buying process as much or as little as you prefer.

Our network of industry contacts can also help make the process smoother. We provide tailored finance packages to meet your needs and work with all the major aircraft finance companies to find the best fit for you.

Our fee is covered by the finance company, so you don’t have to pay us. Whether you’re purchasing a microlight, light aircraft, twin or helicopter, we offer specialist finance for both new and used aircraft.

Our terms range from 1-7 years, and a deposit as low as 10% may be required. You’ll receive an underwriting response in just 24 hours to avoid missing out on your dream aircraft.

We also offer interest-only facilities for specific circumstances such as demonstrator purchases or aircraft purchases intended for upgrade, overhaul and resale.

Finally, we offer finance options for those who want to lease out their aircraft.

Chattel Mortgages

A chattel mortgage is a type of loan used to purchase assets such as aircraft, equipment or machinery, where the lender takes a mortgage over the asset being purchased.
The borrower owns the asset from the outset, but the lender takes security over the asset until the loan is repaid in full.
This means that the lender can repossess and sell the asset to recover their funds if the borrower defaults on the loan.
Chattel mortgages are often used by businesses to finance the purchase of vehicles or equipment, and can have tax advantages as the interest on the loan and the depreciation of the asset may be tax deductible.

Corporation Tax Loans

Key Considerations for Chattel Mortgages

A charge is registered at Companies House and any applicable asset registry.
Chattel mortgages are typically for business use only.
An administration fee will apply.
There may be a penalty charge for early repayment.

A chattel mortgage can have several benefits, including:

Frequently Asked Questions

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If you’re considering financing a private or business jet, it’s crucial to keep the following factors in mind to secure a favourable deal:

  • Conduct thorough research and compare financing options available from both dealerships and private sellers. We, at Smart Funding Solutions, can assist you with finance packages for both.
  • Be cautious of any existing aviation charges when purchasing an aircraft. You can refer to our FAQ section for detailed information on how to check for existing charges.
  • You can charter your aircraft as per your requirements, but it’s essential to keep us informed of any intended journeys until the end of the finance agreement.

We are able to provide financing for both private sellers and dealers, so you are not restricted to purchasing from a specific type of seller.

You may want to ensure that there are no existing charges against an aircraft before purchasing it. The UK Civil Aviation Authority (CAA) and the US Federal Aviation Administration (FAA) offer a service to record charges against aircraft registrations. For a small fee, you can request a search that confirms the registered owner of an aircraft, as well as any charges placed over it. At the lenders end, they will conduct these searches to confirm that there are no existing charges on the aircraft before releasing funds.

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If you are buying a used aircraft, it is recommended to consult an accredited surveyor to ensure its condition. Before hiring one, it’s important to check their professional credentials and ensure they have Professional Indemnity Insurance.

In the event that an engine overhaul is required during the term of your finance agreement, it is important to notify your finance provider as soon as possible. Depending on the terms of your agreement, the provider may be able to assist with financing the cost of the overhaul or may require you to obtain separate financing. It is important to review the terms and conditions of your agreement carefully to understand your obligations in such circumstances.

Comprehensive insurance from a UK-based insurer is mandatory for all aircraft, with the financier noted on the policy.

How can we assist your clients?

A growing proportion of your customers who benefit from your service will require company financing. We at Smart Funding Solutions can collaborate with you to assist your clients in obtaining the necessary funding.

You continue to be in complete control. You may add value to your client’s businesses by introducing them to our service. We provide these services at no cost to you, and by serving as an introducer in this way, you may be able to assist your practice to develop a significant new revenue stream.

We get to know your clients personally as part of our strategy, which is completely approved by the Financial Conduct Authority. This enables us to precisely match their needs with the most suitable facility and lender, allowing them to concentrate on running their businesses.

Can I apply if I have bad credit?

Businesses with a range of credit histories may still be eligible for financing. Even if you’ve previously had difficulties making all of your payments on time, finding out if you qualify for a loan is straightforward.

It could be challenging to obtain regular financing if your credit is poor. There are, however, a variety of financing solutions accessible, so you can still acquire the funding you require to expand your business. Even with a poor credit history, your company can still benefit from the alternative finance lenders we have available.

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Frequently Asked Questions

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An Aviation Loan is a specific type of loan designed to meet the funding requirements of the aviation industry. This might include purchasing aircraft, funding maintenance, operational costs, or expanding existing facilities.

Once approved for an Aviation Loan, the lending institution provides a lump sum to the borrower. The borrower then pays this back, with interest, in agreed regular instalments over a specific term.

Businesses within the aviation industry, such as airline companies, flight schools, charter services, and service operators, can apply for an Aviation Loan. They will need to meet the lender’s eligibility criteria.

The amount you can borrow depends on various factors, including the purpose of the loan, the borrower’s creditworthiness, and the financial status of the business applying for the loan.

The timeline to receive an Aviation Loan varies between lenders. Online and alternative lenders often process applications faster than traditional banks. Approval can take anywhere from a few days to a few weeks.

Interest rates on Aviation Loans can vary significantly, depending on factors like the lender’s policies, your credit score, and the term of the loan. It is recommended to compare rates from multiple lenders before settling on a loan.

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Eligibility criteria may differ from lender to lender. Generally, lenders will evaluate your creditworthiness, income, financial stability of the business, and often the business’s history and future prospects.

Aviation Loan funds can typically be used for any business-related expenses within the aviation industry. This may include purchasing aircraft, equipment upgrades, maintenance expenses, infrastructure development, or operational costs.

Loan repayments are usually made in regular increments (monthly, quarterly, etc.), with each payment containing a portion of the loan principal and interest. The frequency and amount of these payments are agreed upon at the start of the loan.

Many lenders will allow early repayment of loans, although some might charge an early repayment fee. You’ll need to check the specific terms of your loan agreement or consult with your lender.

Failure to repay your Aviation Loan could result in penalties, increased interest rates, a negative impact on your credit rating, or even legal repercussions. If you’re having difficulty with repayment, you should inform your lender promptly.

If your business operates within the aviation industry and you require additional financing for growth or operations, an Aviation Loan could be a beneficial option. Always remember to thoroughly review your financial situation and terms of the loan before committing to any borrowing.

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