Aircraft Loan programs

Banterra Bank now offers competitive aircraft loan programs with terms up to 20 years for older aircraft (minimum loan amount of $60,000).  Additionally, the bank offers flexible rate and term options for aircraft refurbishments such as paint, interior, engine overhaul and avionics upgrades.  Visit www.BanterraAircraft.com to apply online or contact us at 888-254-5731 for further information.

Aircraft Finance Coordinator

Debbie Frawley recently joined the Aircraft Team at Banterra Bank as our Aircraft Finance Coordinator.  Debbie has 12 years of general aviation experience, first working at Sun 'n Fun Fly-In, then at National Aircraft Finance Company, both located on the Lakeland Linder Regional Airport in Lakeland, Florida.  She brings registration processes to our team.  Welcome aboard!

The Banterra Aircraft Team

Banterra Bank’s Aircraft Division welcomes Jeanne Madden who has joined the group as an Aircraft Finance Specialist.  Jeanne is a seasoned aviation lending professional with over 10 years experience with Aircraft Banking Centers and has been regularly involved with general aviation enthusiasts for over 30 years.  Madden will assist the department with customer service related items in addition to assisting aircraft loan applicants throughout the credit review process.  Find out more about our products and services at:  banterraaircraft.com

General Aviation Aircraft Loan Closing Process

Once an aircraft loan has been approved by your aircraft lending source, you will need to provide them with information on the collateral such as an Aircraft Specification Sheet, recent aircraft pictures, copies of various logbook entries including verification of a current Annual Inspection, pre-purchase inspection signed by an A & P mechanic or FAA approve Repair Facility, and a title search from a recognized title & escrow company in Oklahoma City, OK.

Once it’s determined a particular aircraft is being purchased, the lender will request address information regarding how an owner desires to register the aircraft (cannot be a P.O. Box unless accompanied by a physical address too) and addresses where to send routine mail out to along with overnight location of delivery if different from the aircraft registration address.

Loan documents are prepared and generally include a Note which outlines the interest rate, term, loan proceeds amount, etc., a Security Agreement which gets filed with the FAA to place the lien on the aircraft, an Agreement to Provide Insurance Form, Loan Disbursement Form, an Errors & Omissions Power of Attorney Form, and possibly a few other misc. lender items.

Once the lender has receive all original signature loan documents back from the customer and the title company confirms there are either no liens on record and/or they have all original signature lien release(s) in escrow along with an original Aircraft Registration 8050-1 Form, FAA Bill of Sale(s) and lender’s Security Agreement, and possible other misc. items, and the down payment funds have been received in full, then a closing/funding may take place.

Fundings are almost exclusively accomplished via a wire transfer to the title company or seller if no title company is involved.  The buyer will send a final authorization request to the lender for final disbursement. Wires cannot be sent out on weekends, late afternoons or evenings due to wire cut-off times as the Federal Reserve must be open for transfers.

Financial Items Needed to Apply for an Aircraft Loan

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.

Financing Older Corporate Jets

          When the “Great Recession” hit in 2008, older corporate jet aircraft values were hit hard. In many cases, values dropped between 30% - 40% from their prior high values.  The significant drop in values and overall national decline in business revenues of companies operating such equipment created a large volume of available aircraft for sale in the market which further reduced values.  Many lenders who financed older aircraft either stopped lending on them or totally got out of the aircraft financing business altogether.  These events created a new problem; it became almost impossible locate a source for lending on such collateral.
          Today, Banterra Bank offers, via affiliate banks and lenders through syndication, competitive older corporate jet financing on collateral as old as 1980.  Aircraft must be owned and operated by U.S. applicants and not used 100% for FAR 135 charter.  Contact the Aircraft Division for rates and terms.

National Business Aviation Association 2015 Conference

The NBAA 2015 Annual Convention & Exhibition extravaganza starts November 17th and runs through November 19th in Las Vegas, Nevada. Most all General Aviation and Business Aircraft manufacturers display new products at the static display ramp, which is at Henderson Airport in Nevada. Shuttle busses run attendees to and from the main convention center and airport every 10-15 minutes. This year there will be over 1,000 exhibitors and approximately 100 new business aircrafts on display, in addition to used corporate jets being offered by numerous aircraft brokerage businesses.
If you’re in the market for an aircraft and are considering attending the convention, Banterra Bank offers aircraft loan pre-approvals that are valid for up to 90 days (subject to credit review and approval). With a pre-approval in hand, buyers are more likely to negotiate more favorable terms when negotiating prices on aircraft if they have already arranged for aircraft financing, as sellers know they have serious and qualified buyers.