Aviation Finance London
A top aviation finance law firms Private Client team requested a meeting with our MD in order to assist with sourcing aircraft finance to assist with their clients purchase of a Bombardier G6000 business jet. Their client was of Egyptian nationality and would require an operating lease agreement for the aircraft which would be used predominantly to fly Cairo – Dubai – London. The client wanted to finance 80% of the purchase price which was $35 million USD.
What are Aviation Finance Firms
Aviation finance firms are effectively brokers who assist individuals or companies in financing or leasing private or commercial aircraft. Silver Oak Capital has partnered with some of the top aviation finance law firms in the world to ensure our clients receive complete and independent advice when arranging aircraft loans. Employing a broker who understands the market and is well versed in the differenc criteria each lender looks for is instrumental in finding the right loan to help purchase your private jet. This also holds true for operating lease agreements as well as finance agreements for both private and corporate aircraft.
What Type Of Aircraft Can Be Finance
Silver Oak Capital has worked with a number of top aviation finance law firms to compile a comprehensive list of what types of aircraft can be financed. Some of the major aircraft manufacturers include Boeing, Gulfstream, Embraer, Airbus, Bombardier, and Dassault. Most of these manufacturers built both commercial aircraft and private jets. Boeing also specializes in large BBJs (Boeing Business Jets) and Airbus also builds massive ACJs (Airbus Corporate Jets) which cater to mega wealth high net worth royal families or heads of state who need to travel long distances with many hours in the air. Smaller commercial aircraft for small-mid sized airlines can also be financed through our lenders.
How Finance Law Firms Work
Many law firms like to arrange finance on their clients behalf but a number of them will appoint or work with a trusted/experienced broker such as Silver Oak Capital. It is important to build strong working relationships with as many of the top aviation finance law firms as possible. The aircraft finance industry is a very small and niche sector where everyone knows each other. It is therefore very important to ensure you treat these finance law firms and lenders with utmost respect. Ensuring the lender has worked with the particular law firm in the past to arrange aviation loans will also help speed up the application process.
Problems To Solve
The clients’ nationality (Egyptian) would place him in the high risk category for most European lenders. He also required a high loan to value which would prove challenging for an aircraft that was over 8 years old.
Fortunately our knowledge of the aircraft finance market allowed Silver Oak Capital (in partnership with the client’s legal representatives) to place the loan with a German lender able to produce the desired loan criteria to the clients satisfaction.
Aircraft Finance Facility £28 million
80% Loan to Value
Fixed Rate 3.99% per annum
Term 60 months
30% Balloon payment at maturity
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