Global Asset Finance has many years of putting together finance packages for various airlines bringing extensive skills and resources to the area of aviation finance. A popular alternative would be to look at a chattel mortgage as a means of finance.
Aviation we finance:
- commercial aircraft
- executive & corporate jets
- fixed wing aircraft
- private jets
- light aircraft
The company’s main business activities are to act as arrangers to the asset finance and leasing 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.
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 or Chattel Mortgage.
Rent for 5 years. At the end of 5 years you can take on one of the following options:
- Return the aircraft in half-life condition.
- Buy the aircraft for 83% of the original cost.
- Continue leasing on an operating loan basis.
- 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 Asset Finance 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.
Funding from Sovereign Wealth Funds (SWF) and Financial Investors and Private Equity Finance is available in the commercial and corporate aircraft markets.
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