Financing Amount
The portion of the aircraft purchase price you intend to finance through a lease or loan structure. We will finance amounts over $100,000.

Cash Flow
Most companies place a high value on cash and the flexibility that adequate cash levels provide. Funding the expenses associated with operating an aircraft require a significant financial commitment. We can tailor your loan or lease payments to match your company’s cash flow pattern. Typically, a lease provides greater real cash flow savings than a loan because we, the lessor, effectively pass on the tax depreciation benefits of ownership to you, the lessee, in the form of a reduced lease payment.

Depreciation Tax Benefits
Depreciation allows the owner of the aircraft to recover the cost of the asset over its useful life. When making the decision of loan vs. lease, consider your ability to optimally use depreciation tax benefits. For instance, if you are in a current year Net Operating Loss (NOL) position, the full tax shelter savings from depreciation can not be recognized in that year. On the other hand, if you are eligible for depreciation tax benefits, there is a 30% bonus depreciation provision on the acquisition of new aircraft placed in service after September 11, 2001.

Off-Balance Sheet Treatment
Otherwise referred to as “Operating Leases,” off-balance sheet financings do not add debt to your balance sheet. In essence, an operating lease represents an additional source of capital, preserving your overall borrowing capacity as determined by financial ratios. Off-balance sheet financing may also provide financial flexibility if you have existing loan covenants prohibiting additional debt.

Transitioning to Another Aircraft
How long do you plan to keep your aircraft? A key element in determining the right structure is whether your aircraft’s operating profile will change in the future, requiring a move into a different aircraft. Anticipating when your aircraft needs may change will help us build that flexibility into your financial solution.

The information contained herein should not be considered legal interpretations; neither party assumes liability for loss or damage as a result of reliance on this material. Appropriate legal, accounting or other expert advice should always be sought before making personal or financial decisions.