When
applying for an aircraft loan through any of the industry leading aviation lenders, you will need to
supply additional financial information beyond just an Aircraft Credit
Application. The standard Credit Application informs underwriters
of basic information about you, i.e. name, address, date of birth, social
security number, etc. and its primary function is to allow lenders to pull a
credit bureau to check your credit history and score.
A Personal Financial Statement (PFS)
assists in analyzing your total financial net worth, assets such as cash,
marketable securities, retirement accounts, value of residence(s), etc., and
liabilities - outstanding loans/debt, and monthly payments. Additionally, most PFS will have questions
regarding whether or not you’ve filed for bankruptcy, have and outstanding
judgements, or are a party to any legal suits.
The third
set of items needed to accurately determine your cash flow/income stream will
be obtaining copies of the most recent two years Federal 1040 Personal Tax
Returns with all schedules. If you are
self-employed and file separate business tax returns, the lender will also require
those too. Additionally, a Year to Date
Profit & Loss Statement with a Balance Sheet will be required to evaluate
company liabilities and liquidity.
Lastly,
lenders will want to see current bank/brokerage summary statements to confirm
individual and company liquidity (cash reserves) to verify what was indicated
both on a PFS and business Balance Sheet.
Depending on
the dollar amount and complexity of the credit application, credit reviews can
take anywhere from one business day to a week or even longer for a final
decision. Most transactions are reviewed within the one business day time frame
however. It is wise to discuss credit decision timelines with lenders prior to
applying to confirm they can meet applicant’s needs and expectations.
