If you are looking to set up a tour company or perhaps even a skydiving school, you’ll know that getting the aircraft is going to be the most expensive aspect of getting set up. Thankfully however you will not have to outlay all of your staring capital in order to do this, because aircraft financing can be the perfect option for you. Many think that they will not be able to set up their business if they have been rejected for a loan, but getting this kind of financing could be the perfect way for you. Don’t let your dreams of running this kind of company disappear, because specific financing for the aircraft could be the perfect way for you take to the skies with your new business.
Approval Rate
The approval rate from a bank or private lender is not always that great for businesses, especially if you have not got much collateral to put up for the credit. When you get a loan which is specifically for one thing however, in this case the airplane, then you’ll find that it is much easier to secure the financing that you need. This is because that money is not for marketing or staffing, but specifically for that airplane. This gives financing companies confidence which is why approvals are higher.
Smart Repayment
Equipment financing companies understand perfectly well that you are not going to be able to borrow the huge sum required for an aircraft and then pay it back at great speed. For this reason they offer smart plans which young businesses can deal with, as well as relatively low interest rates so that you are not paying for the aircraft for many years to come. This is a very cost effective way of getting your hands on that plane which you need so much for your business.
Spending Your Capital
Even if you were in a position to pay outright for a second hand plane, the likelihood is that you wouldn’t have much more money than that to invest in the business. Set up costs of a business alone are pretty darn high which is why it makes sense to use your liquidity on that. Borrowing the money for the plane means that you will be able to count on enough cash on the hip to pay for things like marketing, branding and getting the business off the ground.
Additional Credit Lines
If you do wish to take on additional lines of credit for your business then your aircraft financing will not prevent you from doing that. This is because of the specific nature of this kind of financing. This means that you may be able to take on a little bit of extra credit in order to help your business get to the next level.
If you do have dreams of opening up this kind of business then don’t let the cost of the aircraft set you back, because you do have several options.