Microlighters

Hi All,

This topic is under discussion on Avcom and it was also here a while back. It seems that under current conditions its extremely difficult to get finance for NTCA aircraft or second hand aircraft for that matter.

Id like to establish with this post what sort of demand is there really out there for people wanting aircraft finance?

Whats your experience with the banks?

What range of aircraft should be covered, from trikes to fixed wings and gyros?

And any other info you wish to share on the subject.

Thanks
Regards
Massimo

It depends on the terms. Most will offer you 30% deposit, 36 months and VAT back in month 3, IF you sign over house, kids, wife and personal surety,,,

If you are able to offer flexible financing similar to cars then there is a huge market. If it just rehashed and similar to above in different form then there is no market. Few folks have huge cash to out down a deposit on what is essentially a toy... Also the margins on <R100k for the banks are in their opinion not worth the effort...

just my 2c.

I agree with RV4ker

We can definately do with a finance house that can finance clients, new or secondhand. There is a major market out there. Even if they only get 60-80% of the cost financed it will open up a huge market. There are quite a lot of people out there that can do a sizable deposit but it's just too much to self finance outright.

You need to keep in mind that insurance is needed against loss of all sorts because the finance company will nee to recover the outstanding amount. So look also at that premium I would say before financing.

Still no easier way or cheaper way to finance than to 2nd bond your house. Service the outstanding to credit and have the bank make available through an access bond.

As long as the oustanding is less than the house value they don't need all the drama of plans, what is a ntcaprovide us with your balance sheet rubbish and finance is ready within 48 hours.

Thats of course if you hav'nt over capitilised on your home already.

I think it will be easier to get past the bank of Lisbon than the softness as far as a second bond is concerned on your house. They tend to get very emotional when you ask them such a "stupid question"!!!

Get the bank to re-evaluate your property and if your outstanding is considerably less than the value, they'll consider.

Speak to someone with drive and ambition. There's still some who want to achieve - or change your bank.