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AIRCRAFT
FINANCING |
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We are known for our flexible aircraft financing financial solutions. We offer up to 90%
aircraft financing and terms up to 20 years. Our minimum aircraft loan is $75,000.
Aircraft
Loan Programs
"Prime +"
This is a variable loan program that adjusts when the Prime Rate changes. This is perfect for shorter-term loans or clients who wish to take advantage of the current lower rates in the market.
1 Year ARM
This Product adjusts each year according to an index over the Prime Rate. This product still offers the flexibility of shorter term financing with the comfort of fixed monthly payments scheduled a year at a time.
3 Year ARM
Since most aircraft loans are held for approximately 3 years, this product tends to be the most popular option. Many of our customers take this option because maintenance cost, engine overhauls, and avionics upgrades often require an existing
aircraft loan to be refinanced. This offers the confidence of a fixed rate for a typical term of an aircraft loan while allowing rate adjustments every 3 years without the requirement of a balloon payment or all new loan documents.
5 Year ARM
This option is another great way to take advantage of the today’s low rates! If you are confident that you will have your aircraft for a few years and you will not need to finance any major repairs or upgrades, then this may be your best option.
7 Year Balloon
Many banks offer a 7-year balloon for aircraft loans. This program again offers the comfort of a fixed rate for a longer period of time; however, the largest draw back to this type of loan is a large payment or balloon that is due at the end of the term. This balloon payment will typically require you to either sell or refinance your aircraft at a time when rates will most likely be less friendly on your budget. In addition, the balloon programs, unlike the ARM (adjusted rate mortgage), do not have a fixed index rate by which the interest rate will adjust.
15 – 20 Year Fixed
If you are not one for upgrading your aircraft and avionics, or financing overhauls every few years, then this type of program may be for you. Since rates are at their lowest point in years, many people think that this is the best
aircraft loan program for them.
Whichever loan program you choose, be sure to evaluate your specific needs and the plans for your aircraft and then pick the financing program that best meets those goals. There is no need to pay a premium for a rate that is fixed for longer than you plan to keep your loan.
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| Brought to you by: Cambridge Aircraft Finance © 2003. All rights reserved. Aircraft loans to fit your needs. |
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