What to do next
Aviation Finance made easy
- Choose the aircraft of your choice considering the full life costs, for example maintenance, insurance, fuel, hangar fees and other running costs.
- Ensure there is no lien or existing charge on the aircraft. You can approach the Civil Aviation Authority (CAA) yourself regarding UK registered aircraft and request a search on it for a nominal fee. However, we will carry out a search when registering our charges with the CAA before the funds are released for your purchase.
- Agree on the purchase price with the broker or vendor.
- Once you have decided to proceed, provide us with details of the aircraft so we can carry out a valuation for credit underwriting purposes and help you identify a finance structure that meets with your specific requirements.
- If you are buying a second-hand aircraft or helicopter, arrange for your survey and valuation to be carried out and supply us with a copy of the paperwork. You don’t need a survey on a new aircraft or helicopter.
- On receipt of your mortgage / loan documents, review the paperwork, execute and return it
- Arrange for your aircraft insurance to begin on the date of delivery. It is a condition of the loan advance that insurance with a reputable company is in place. Once the insurance has been confirmed with our interest noted on the policy, we will lodge our interest and conduct a search with the relevant aviation authority. Register the aircraft or helicopter with the UK’s CAA or the Federal Aviation Authority (FAA) in the USA.
- Funds will be released directly to you or to the vendor or broker, and you can take delivery of your aircraft.
Aviation Mortgage
There are no limits to the amounts we can lend, subject to the loan typically not exceeding 80% of the valuation or cost (whichever is lower) of the aircraft. Typically, the mortgage term is 10 years, but a number of alternative options are available.
Finance can be arranged in Sterling, Dollars, Euros and other major currencies. In most cases, we recommend an evenly spread mortgage. Interest rates (fixed or variable) and fees are dependent upon the size of the loan. We will need to determine aircraft specifications before this can be confirmed.
The aircraft is taken as our primary security by way of an Aviation Mortgage. Early repayments in full or periodic lump sums can be made at any time, without penalty. Cash injections however may not be redrawn. Any administrative charges and security registration fees can be added to the loan account, rather than paying them at the outset.
Balanced Payments Plan
This facility provides the convenience of regular, fixed monthly repayment amounts, regardless of interest rate fluctuations. Instead the estimated term of the agreement will vary according to movements in the interest rate. As rates fall or rise over the period of the contract, so does the interest charge you pay. Finance can be arranged in Sterling, Dollars or Euros. This can be particularly favourable if you have an income in these currencies, as there is no exchange rate risk.
You pay an initial deposit, and repay the balance in fixed monthly payments over an agreed period. At the end of the term any variation of interest is reconciled and will be settled as either a credit to you, or a charge. Alternatively, the term can be shortened or extended. Other options available with Balanced Payments Plan include a deferred final ‘balloon’ payment, or settling your agreement early with a lump sum payment.
Bespoke Facilities
Depending on the level of borrowing, we can consider a number of different structures tailored to individual cash flow requirements including low start mortgages, interest-only periods, balloon payment mortgages, or a longer 15 year mortgage term lowering monthly repayments improving spending power.
Benefits of Capitas
Reach for the skies with a first class service
Aside from the amounts involved, aviation finance can be a complex subject. Whether you’re a business or private user, funding your first aircraft or an upgrade, Capitas can provide choice, quality and genuine personal service at every turn. We pride ourselves on our aviation market knowledge and have extensive financial solutions that can fulfil your requirements. Rely on us to support you through the entire buying process with the benefit of years of experience.
Why you should choose Capitas as your aircraft financing partner?
Simply, it’s because we offer you:
- Asset class expertise: Our people are senior ‘hands-on’ professionals who understand the different types of fixed wing aircraft, single or twin engine helicopters and executive jets that we finance; the dynamics of these assets, their values and their working life
- Sound financial advice: Our corporate aviation consultants combine aircraft asset expertise with knowledge of financial accounting, tax-related issues and regulations.
- Fit for purpose financing: We can fund for individuals, owner groups, syndicates and corporate purchasers in Sterling, US dollars and Euros providing rate competitiveness and consistency
- Tailored solutions: There’s a range of flexible facility structures to fund precisely the aircraft you’re looking for
- A pleasing experience: We’re hear to support you through the entire buying process, dedicated to supporting you across not just the lifecycle of your investment but the lifetime of our relationship
Aviation
Capitas provides finance for all types of new and used corporate and commercial aircraft, ground support equipment and ancillary aviation equipment.
We have the capability to handle aircraft acquisition transactions of all sizes. Our corporate aviation consultants combine aircraft asset expertise with their knowledge of financial accounting, tax-related issues and FAA regulations. Aviation Finance from Capitas is a strategy for gaining a variety of benefits:
- We can help you finance fixed wing aircraft, helicopters and executive jets
- We can fund for both private individuals and business users
- You can buy your aircraft through a dealer or from a private individual. We can help you with finance in both cases.
- Our corporate aviation consultants combine aircraft asset expertise with knowledge of financial accounting, tax-related issues and FAA regulations
- We can match the finance to the replacement cycle of the asset
- For corporate clients our sale and leaseback option can release valuable cash, and remove aircraft from your balance sheet
- We provide finance lease, operating lease, loan and mortgage financing, including pre-delivery payments financing and export credit-supported financing
- We support Manufacturer sales contracts and Client purchase contracts (for new aircraft/engines) and used aircraft sale and purchase
- We can carry out transactions in Sterling, US dollars and Euros