Aircraft Financing
Societe Generale Equipment Finance has been involved in the financing of aircrafts for more than 50 years. Accordingly, Societe Generale Equipment Finance Czech Republic and its branch in Slovakia are actively established in this area of financing, and are currently one of just a handful of local financial institutions providing a product specifically tailored to the acquisition of aircfrafts (including helicopters) on a local basis.
This product is mainly based on the value of the machinery acquired as the underlying asset. An emphasis is also placed on the investor's credibility and his investment and financing plan, which sets out the plan for the purchase of an aircraft from the perspective of its planned use and the financial return on the investment. If aeronautical technology is to be acquired by the investor solely for private purposes and not for commercial use, only the relevant information concerning the investor's adequate capital need be evidenced.
Who is an investor?
The entire private aircraft business is built on discretion; naming customers is taboo. Intentionally, then, the investor and not our debtor is named. In this case, the debtor may be a special-purpose vehicle set up, for example, to preserve a certain degree of investor anonymity.
Other important elements in the approval of financing are creditworthiness, technical erudition and, of course, the holding of the necessary certificates required of an aircraft operator/lessee, if not the same person as the debtor.
The aircraft financing we specialize in are largely aeroplanes (e.g. business jets) with a maximum capacity of 70 passengers and helicopters. These aircraft should not be more than 15 years old.
The product we offer is a special-purpose financial loan, where the debtor is the economic owner of the aircraft, and our company is registered with the Czech Civil Aviation Authority - UCL (or the CCAA or CAA of another state) as the pledgee under a concluded security agreement. The financing period ranges from 7 to 12 years. Financing is provided as standard for 80% of the fair market value of the given type of aircraft, as determined from international databases (e.g. Bluebook). A balloon payment may be set in each agreement in keeping with the type and age of the aircraft. Financial resources are paid on time to an escrow agent, or against the production of an original bill of sale directly to the supplier's account, based on a binding authorization and acceptance of the aircraft by the client.
An important factor in the financing of aeronautical products is the conclusion of an insurance contract (a liability and hull insurance policy) to the necessary extent. We can even mediate draft insurance terms as part of the financial offer.
Alternatively, lease financing can be offered.