Aviation Finance
Global has a directorship with knowledge of aircraft and helicopter finance second to none. Many years of putting together finance packages for various airlines has brought extensive skills and resources to the area of aircraft finance.
The company's main business activities are to act as arrangers to the asset leasing and finance industry and enabler for leasing programmes. We specialise in arranging debt facilities to finance investment in assets and projects by our clients.
One technique, which has been very successful with aircraft financing, allows the user of the asset “walk away” rights at various dates - with a third party taking the real risk on the value of the asset and thereby adding “real value” to the finance transaction. We have also developed similar finance structures, which help companies with the requirement of the Private Finance Initiative.
The kind of option leases we have arranged for airlines when they have acquired aircraft where future performance and value is not proven. Essentially the airline gets the best of both worlds, it keeps the upside in the aircraft if all goes well but avoids the downside if the aircraft does not perform.
The ideal transaction for any airline is an option lease:
Rent for 5 years. At the end of 5 years you can take on one of the following options:
1. Return the aircraft in half-life condition.
2. Buy the aircraft for 83% of the original cost.
3. Continue leasing on an operating loan basis.
4. Continue leasing on full pay out basis.
Our expertise lies in our knowledge of the market for the risk taking amongst banks and other finance houses, trading houses and operating lessor's, insurance companies and manufacturers. Our ability to get these interests to combine and to create attractive option leases and other on and off balance sheet, and cross border asset finance solutions.
To get the average loan to completion can take a lot of time, work and knowledge. Allowing Global to source the finance for you removes the headache of the work involved with sourcing and negotiating the right finance for your airline. The service we provide is very similar to the buyer's use of an insurance broker to place the various risks of the company's operation with the insurance company that will accept the risk and provide the best coverage and rates.
What can Global do for you
Being specialised in the field of aviation finance Global can source the best finance package with the best funding source. Global works for you, and acts as a producer to arranging funding for the lender and knows their appetite for the many different deals. Using Global can save you time. Global offers an efficient route to use for your finance, with possible cost savings. Global knows the market and the institution that is likely to have the best rates and terms.
The right package
Global will spend considerable time making sure that you and the funder fully understands the project and finance required.
Why is it important to identify your needs
It is important to have the right finance in place as many of our clients have varying needs such as: Do you want to make monthly, quarterly, six monthly or annual payments Is the aircraft new or used What is the length of the lease Who gets the tax benefits on the transaction. Is off balance sheet a consideration Is early termination a consideration An SPV (Special Purpose Vehicle) may be required in which Global excels in obtaining. Above are just a few of the consideration in obtaining finance for your aircraft and helicopters. Global with its market experience will take into considerations all your needs, while recommending alternatives to you.
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