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Everything you need to know before you apply.
- A minimum 1-year ABN/ACN history.
- Full financial statements (Company and Personal tax returns).
- Personal ATO Notices of Assessment (NOA).
- An up-to-date ATO Portal statement confirming all BAS lodgments are current and paid.
- Two most recent payslips.
- A current employment contract.
- A recent ATO Portal statement or Income Statement from the MyGov website.
While you can cross-hire your aircraft to a flight school or charter operator, few lenders will allow this “future income” to be used for loan servicing. Generally, you must be able to service the loan via your own existing income. To include cross-hire income, lenders typically require “evidence” of future work and income, often supported by the books of the flight school or charter company involved. Ongoing contract work can also be considered. This is on a case by case basis. If you are considering cross hiring or dry leasing the aircraft, please get in touch and let’s talk it through.
What are the timeframes for approval?
The timeframe is largely determined by the speed you can supply the requied documentation. Once we have a complete “tailored paperwork list” from you, we can submit to application the lender.
Typically, you can expect a response within a few business days of a complete submission. Note that our referral partners do not submit partial applications. You will need to provide everything on the paperwork list before an application is submitted to a lender.
Not necessarily, but it is highly recommended. Lenders look to mitigate risk, and a 20% deposit is the industry standard. While we can request “no deposit” finance, it is subject to the strength of your profile and the age/type of the aircraft.
Before funds are released to the seller, the lender will require:
- A copy of the most recent 100-hourly/Annual inspection.
- A Certificate of Insurance noting the lender’s interest.
- A Certificate of Airworthiness.
- A bank statement from the seller to verify funds transfer details (this must match the Sale Contract).
Lenders focus on Engine Times (TSO) and total airframe hours. If an engine is near its overhaul limit, the collateral value is significantly reduced. They also consider the intended use: private travel is straightforward, whereas commercial use (charter/training) requires more rigorous financial forecasting.
For commercial aviation finance, lenders prefer “runs on the board.” They want to see that you understand the costs of running an aircraft. A brief 3 to 4 paragraph summary outlining your business background and the aircraft’s intended role is often the best way to satisfy credit departments. For private purchasers it’s all about your income, your asset and liability position and your ability to service the loan. Our referral partners can talk you through this.
If the aircraft is being used as security for the loan, it should be on the Australian register (VH or RAA) before funds are released to the seller. For unsecured personal loans, this is not a requirement, though it remains best practice to ensure registration is finalized before payment.
We are a referral service and receive a Commission when you are successful in obtaining your finance. This will generally be 20% of the Commission received by our referral partners. Neither Australian Aviation Finance or our referral partners get paid if you are unsuccessful in your finance application.
Australian Aviation Finance is not a credit provider or broker. We operate as a referral service under ASIC Regulatory Guide 203 (RG 203). All credit applications are subject to full assessment by our referral partner RFS Finance Pty Ltd (ACL 388022).
Absolutely. For this kind of scenario we will put you in touch with a mortgage finance specialist from RFS Finance who can talk you through the pros and cons of accessing home equity for a purchase like this. This can be an extremely cost effective scenario but needs to be set up correctly.
Beyond income verification, we require:
- Current Identification (Driver’s License/Passport).
- A detailed Statement of Position (Assets and Liabilities).
- Consent for a credit history check via our referral partners prior to lender submission.
Our referral partners will give you a detailed list of what’s required depending on your situation.
Yes. For most secured loans or leases, lenders require an independent, certified appraisal. This ensures the Loan-to-Value (LTV) ratio is accurate and the aircraft serves as sufficient collateral. This valuation is at the buyer’s expense. Please contact us to discuss the cost and the specific appraisers accepted by our lending panel.