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.