Question: What is the application like when applying for a loan for a club? What supporting documents will be needed? Is this documentation different if it’s a direct to flying club loan vs. a leaseback?
Answer: It depends on how long the club has been in operation. For established clubs (5+ years) we can offer direct to club financing. The documentation is minimal in this case. We have developed an application specifically for direct to club financing requests. It is roughly three to four pages asking basic information about the club’s history, membership, and current financial situation. Additionally, lenders require three years of tax returns and/or financial statements.
For newer clubs a personal guarantee is required. Along with the flying club’s financials, lenders will require a full personal credit application and two years of financials from the individual providing the guarantee. In some cases, the personal guarantee can be removed once the club has been established for at least five years.
Leasebacks are similar to the new club requirements. The individual purchasing the aircraft to be leased back will provide a full personal credit application and two years of financials. In this case the only information needed on the club is the name of the club and estimated hours the aircraft will be flown.
If you are thinking about buying an airplane for your club, please call and we can talk about your club’s situation and aircraft needs.
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Great rates. Great terms. Helpful and responsive reps. Three good reasons to turn to AOPA Aviation Finance when you are buying an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (75263) or click here to request a quote.
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