GA Prices Rising, Sales Gaining Momentum
Success in lending on the acquisition of a piston aircraft depends primarily on two important aspects.
Of course, as in all lending, the first is finding borrowers with outstanding credit, strong liquidity and cashflow. The is fairly self-explanatory. Lenders search out clients that have sufficient cash on hand for the down payment, usual expenses and then some. Each underwriter has their own matrix that they require a borrower to confirm to that leaves the borrower in a comfortable cash position after the purchase. Cash flow means the borrower makes sufficient money each month to allow for unburdensome payment to the borrower. Every lender wants the borrower to have the character and financial history that compels them to the monthly payment in a timely and consistent fashion.
To read more of the article, visit Aviation Digest’s page.