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  • NAFA Administrator posted an article
    CurrencyAir Joins National Aircraft Finance Association see more

    CurrencyAir Joins National Aircraft Finance Association 

     

    National Aircraft Finance Association (NAFA) is pleased to announce that CurrencyAir has recently joined its network of aviation professionals. CurrencyAir arranges competitive financing choices for aircraft purchases. 

    “NAFA members extend a warm welcome to CurrencyAir into our association,” said Jim Blessing, president of NAFA.  
     

    About CurrencyAir: 

    CurrencyAir offers an extensive network of lenders for all kinds of aircraft purchases, regardless of aircraft age, purchase price, or the type of aircraft being acquired. With a wide range of attractive terms and rates, CurrencyAir provides competitive financing options and superior customer service. A dedicated CurrencyAir financing expert works with aircraft buyers through the entire process, coordinating all details with the buyer, seller, escrow and insurance to ensure a smooth closing.    
     

    Products & Services: 

    • Term loans

    • Leases 

    • Financing for jets, turboprops, piston aircraft, helicopters, light sport, kit and experimental aircraft  

    CurrencyAir is a lending product designed for Controller.com, the world’s largest pre-owned aircraft sales site. With a lender network that covers the spectrum of deal sizes, aircraft types, and missions, CurrencyAir arranges competitive financing choices for aircraft purchase from $25,000 up to $50 million and beyond. Whether the mission is Part 91, Part 135, flight school leaseback, or even essential use, CurrencyAir has customized financing options to suit both consumer and corporate clients. For more information, visit: https://www.gocurrency.com/air/
     

    About NAFA:  

    The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. The company now has three offices: Geneva, New York City and Dubai. 

     September 26, 2022
  • NAFA Administrator posted an article
    Financing Tips for Today’s Used Jet Market (Part 1) see more

    In today’s overheated market, older and harder-to-finance business jets are being offered at unusually robust prices — and are still being snapped up quickly. AvBuyer Aviation Journalist, Chris Kjelgaard asks what buyers can do to obtain financing and move quickly on a potential deal in the market.

    It is clear in the early months of 2022 that the Covid-19 pandemic is continuing to fuel intense market demand for used business jets, whatever their age and category. Many people now purchasing used business jets are first-time buyers who lack experience of dealing with the many complications inherent in investing in, and owning, such sophisticated assets.

    One major complication (perhaps the most important one for many buyers) is ensuring that adequate and suitable financing is in place and available at short notice in order to close the aircraft purchase, in a market environment in which sellers are calling the shots. 

    Many sellers are insisting buyers close deals quickly, and some sales are being unwound when the transaction encounters even short delays. Some sellers are even advertising sales as being “as-is aircraft condition, which could mean ‘first come, first served, and high bid wins’,” says Christopher Lee, Vice President – Aircraft Division in 1st Source Bank’s Specialty Finance Group.

    Some sellers advertising such sales are insisting that buyers do not conduct pre-purchase inspections of the aircraft on offer, he says — a requirement that experienced buyers would consider an absolute deal-breaker. 

    Read full article here

    This article was originally published in AvBuyer on March 7, 2022.

     

  • NAFA Administrator posted an article
    Centennial Bank Joins National Aircraft Finance Association see more

    FOR IMMEDIATE RELEASE: May 12, 2022
    Contact: Tracey Cheek
    tlc@nafa.aero
    405.850.1292

    Centennial Bank Joins National Aircraft Finance Association

    Edgewater, MD – National Aircraft Finance Association (NAFA) is pleased to announce that Centennial Bank has recently joined its network of aviation professionals. Centennial Bank helps finance aircraft purchases and Small Business Administration loan services for first-time buyers as well as those trading up or refinancing current aircraft.

    “NAFA members appreciate having member financial institutions available to consult as they manage their aircraft acquisitions, sales and refinancing transactions,” said Jim Blessing, President of NAFA. “The financial side of purchasing aircraft brings many challenges to our members. Having Centennial Bank as a NAFA member will serve our members well and we welcome them to our organization.”

     

    Products & Services:

    • Financing and refinancing of aviation products
    • U.S. Small Business Administration and USDA programs

     

    About Centennial Bank:

    Centennial Bank provides a broad range of financial services, with an emphasis on aviation transactions. With locations in Arkansas, Florida, Alabama and New York, Centennial Bank strives to provide convenience and expertise to clients with a full array of financial products. Aircraft lenders understand the unique needs of aviation owners-- most are pilots themselves--and can address aircraft financing concerns from providing structuring advice to managing transactions.

    Centennial Bank, a Home Bancshares (NYSE:HOMB) company, is a full-service financial institution with branches in Florida, Arkansas, Alabama and New York with $15 billion in total assets. For more information, please visit www.my100bank.com. Centennial Bank, Member FDIC, Equal Housing Lender. All loans subject to credit and collateral approval.

     

    About NAFA: The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer.

  • NAFA Administrator posted an article
    Learn top 5 benefits of this frequently misunderstood financing product for individuals and orgs. see more

    NAFA member Global Jet Capital discusses the top 5 benefits of this frequently misunderstood financing product for individuals and organizations.

    There is an unprecedented level of interest in business aviation. Thankfully, there are a range of options business aviation users can choose from to access an aircraft. Each conveys its own intrinsic benefits and drawbacks, and may be more or less attractive to the user based on their unique situation. Mindfully weighing these options – from charter, to fractional ownership, to operating leases, to traditional financing – is a crucially important process, especially since your choice can have far-reaching implications for your balance sheet.

    There are many strategic advantages to an operating lease that you should consider when making this choice. Here are the top 5 advantages that this frequently misunderstood financing product offers individuals and organizations:

    1. Built-in agility
    Yes, operating leases are contractual arrangements. The right lessor, however, can structure a lease that can adjust to changes in your mission.Depending on your needs, a lease can permit extensions, provide an early termination opportunity, or facilitate a move into a larger or smaller aircraft. In this framework, it’s easy to pivot to suit your unique situation.

    Read full article here

    This Global Jet Capital aricle was originally published by Business Jet Traveler in February 2022.

  • NAFA Administrator posted an article
    Avia Yacht Partners 360 Joins National Aircraft Finance Association see more

    FOR IMMEDIATE RELEASE: April 13, 2022

    Contact: Tracey Cheek

    tlc@nafa.aero

    405.850.1292

     

    Avia Yacht Partners 360 Joins National Aircraft Finance Association

    Edgewater, MD – National Aircraft Finance Association (NAFA) is pleased to announce that Avia Yacht Partners 360 has recently joined its network of aviation professionals. Avia provides bespoke consulting and facilitation of acquisitions, sales and financing/leasing for preowned and new build business jets and superyachts worldwide.

    “NAFA members pride themselves on knowing their markets, and the luxury market is one of our most important verticals,” said Jim Blessing, president of NAFA. “As NAFA celebrates our 50th anniversary, we point to the many services our members offer to the public, including the work Avia Yacht Partners 360 does in the luxury aircraft world. Knowing the legal filings required is equally important as understanding the mechanics or routes for flight.”

    Founder and CEO Rolf Smith serves the luxury niche in both the aircraft and luxury watercraft markets. Because of his own insider insights as well as a network of trusted partners, Avia Yacht Partners 360 helps make the dream of custom aircraft ownership and charters a reality.

     

    Products & Services

    • Charter: planning and execution of for-hire air travel
    • Sales: for those acquiring or selling aircraft
    • Financing and leasing: facilitation of the purchase process
    • New builds: integration and management of new-build luxury aircraft

     

    About Avia Yacht Partners 360:

    Avia Yacht Partners 360 was founded by Rolf Smith and is based in Ft. Lauderdale, FL with locations in North America and Europe. The company provides a customized and bespoke approach to all the advisory, commercial, financial, legal, technical, and project management aspects of luxury aircraft acquisition. Avia is able to tailor services and components according to the needs of the client.

      

    About NAFA: The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. 

  • NAFA Administrator posted an article
    Business Aviation Advisor Podcast: Accentuate The Positive – Reduce Financial Risk see more

    In Rewarding Risk Management, NAFA member, the VanAllen Group’s Jeff Agur and Don Henderson discuss how best to manage the business aviation expense side of your ledger, to define that value, and eliminate any unnecessary financial risks.

    You may view your flight operation’s cost as just another line item on the expense side of your balance sheet … without reference to the value that this remarkable capital asset provides to your organization. 

    If it’s time to accentuate that positive value and eliminate any negative business aircraft perceptions, then it’s time to hear what independent aviation professionals have to say.

    Listen to podcast here

    This podcast was originally published by Business Aviation Advisor on January 25, 2022.

  • NAFA Administrator posted an article
    What’s the Aircraft Financing Outlook in 2022? see more

    AvBuyer’s Matt Harris asked NAFA Member David Hudak of 1st Source Bank’s Aircraft Finance Division for his insights into the market for financing private airplanes. How did the market develop during 2021, and what will the financing industry look like in 2022? Find out here.

    Considered a leading source for aircraft financing, 1st Source Bank’s history stretches further back than aviation itself. Established 158 years ago in 1863, aircraft financing has been offered by 1st Source for more than 35 years.

    Today, the Aircraft Finance Division at 1st Source can accommodate more than 300 transactions annually, with the main focus currently being the turboprop and jet markets across the United States, Mexico and Brazil. Nevertheless, the bank will actively finance turbine helicopters, too.

    “The total value of our aircraft financing portfolio is in the mid-nine-figures range, via traditional loan terms,” David Hudak tells AvBuyer as he sits down to discuss the market.

    Read full article here

    This article was originally published by AvBuyer on January 6, 2022.

  • NAFA Administrator posted an article
    Top 5 Myths About Business Aircraft Operating Leases see more

    NAFA member, Global Jet Capital, shares the top five myths about business aircraft leases.

    There are more options today for accessing a business aircraft than ever before: from charter, to fractional ownership, to operating leases, to traditional financing. When dealing with large, highly-regulated assets that could cost tens of millions—or more—to own, weighing the options to find what makes sense for your specific requirements can be difficult. To make navigating the sometimes-complex landscape of business aviation a little easier, we’re going to clear up five common myths around operating leases—and explain some of the advantages of this frequently misunderstood financing option.

    Read full article here

    This article was originally published by Global Jet Capital on December 16, 2021.

  • NAFA Administrator posted an article
    Aircraft Executives Joins National Aircraft Finance Association see more

    FOR IMMEDIATE RELEASE: March 16, 2022                                   

    Contact: Tracey Cheek 

    tlc@nafa.aero 

    405.850.1292 

      

    Aircraft Executives Joins National Aircraft Finance Association 

     

    Edgewater, MD – National Aircraft Finance Association (NAFA) is pleased to announce that Aircraft Executives has recently joined its network of aviation professionals. Aircraft Executives provides services focused on flight operations and aircraft acquisition transactions. 

    “NAFA members recognize the importance of flight operations and the data behind aircraft purchase transactions,” said Jim Blessing, president of NAFA. “Members with the type of expertise that Aircraft Executives possess are what make NAFA relevant and vital to the industry. We welcome Aircraft Executives to our organization as NAFA celebrates our 50th anniversary and look forward to their involvement in our upcoming conference and other events.” 

    Products & Services: 

    • Aircraft Brokerage and Acquisition Services  

    • Flight Operation Services  

    • Aviation Consulting Services 

      

    About Aircraft Executives: Based in Atlanta, Georgia, Aircraft Executives aims to ensure the best private aviation experience possible with transactions personalized to fit each client’s specific needs. The team can handle every step of the process from listing to closing and beyond with efficiency and professionalism. Aircraft Executives strives to continue relationships beyond the closing of the deal, whether to provide flight operation services or to simply be the trusted source for aviation questions.  

    Aircraft Executives services include research, valuation, selection, marketing and contracts for aircraft acquisition, flight department setup and crew staffing for operation services and aviation consulting services that include appraisals, delivery, leasing and charter brokering. 

    About NAFA: The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. The company now has three offices: Geneva, New York City and Dubai. 

  • NAFA Administrator posted an article
    NAFA member, Adam Meredith, AOPA Aviation Finance Company, discusses lender requirements. see more

    NAFA member, Adam Meredith, President of AOPA Aviation Finance Company, discusses lender requirements.

    Remember, the bank is your partner when you buy an airplane, despite the fact you may never take your loan officer on a flight. Like all partners, both must feel comfortable doing the deal. 

    That's the best way to understand a bank’s policies, especially if you, the potential owner/operator, are less conservative when it comes to aircraft total time (AFTT) and time between overhauls (TBO) at the time of airplane acquisition.

    The reality is that many lenders are not comfortable writing loans for aircraft approaching 9,000 hours flying time, which significantly limits financing options. From a mechanical perspective, 9,000 or 10,000 hours isn't a "clock strikes 12" moment after which things fall apart. But a high-time piston airframe may have ongoing maintenance issues for the next owner.

    Also, historically, resales of aircraft in this condition are problematic. The bank could be stuck with a non-marketable asset if they ever have to repossess it. An airplane sold for scrap is never as valuable as one sold whole. That said, financing is not impossible, it is worth calling AOPA Aviation Finance.

    Read full article here

    This article was originally published by AOPA Aviation Finance on November 1, 2021. 

  • NAFA Administrator posted an article
    Financing Aircraft Acquisitions In a Hot Market see more

    NAFA’s Tracy Cheek explains why, more than ever, you need to do your homework, and have your financing team in place…before you begin shopping.

    Selling prices for aircraft are through the roof right now, reaching levels of 20% or more above what they were just two years ago. And if the current demand persists, they could continue to increase at similar rates for years to come.

    That uncertainty causes buyers to wonder if they’ll find themselves in a difficult financial position when they’re ready to sell or trade up.

    It’s a dilemma, but if you are in the market to buy or replace an aircraft, fluctuating prices won’t diminish your air transportation needs. If you are ready to buy, you’re ready to buy.

    Real concerns can arise, however, when it comes to financing the purchase. If you buy an aircraft at an inflated price today, what happens if the prices plunge when you decide to sell or trade? How does that affect the type of funding structures that financial organizations offer to customers in the current market? (See BAA Family (Office) Planning for Aircraft, December 2021)

    Click here to read full article

    This NAFA article was originally published by Business Aviation Advisor on March 14, 2022.

  • NAFA Administrator posted an article
    Why Asset-Based Loans Are Not Common in the Piston Market see more

    NAFA member, Adam Meredith, President of AOPA Aviation Finance Company, discusses asset-based loans in the piston market.

    Banks rarely do asset-based loans in the piston market. That’s because lenders can easily, and quickly, get financially upside down in piston airplane.

    Let's say you're a good enough credit risk that with 15% down a bank will lend you the money to buy a $2.1 million 2010 Cessna Citation Mustang. After owning the airplane for three months, a 500-year flood submerges the factory you have a 50% stake in, along with half the units of a garden apartment complex you own near the coast. All your submerged manufacturing machinery is declared a total loss, with replacement equipment 18 months away by container ship. You’re forced to close the factory. Half the tenants of the apartment complex move out permanently, causing you to lose that revenue. And the hangar where you kept your aircraft had its roof blown off, causing cosmetic damage to your jet. You’re unable to pay on the loan, so the bank must repossess.

    Read full article here

    This article was originally published by AOPA Finance on November 1, 2021.

  • NAFA Administrator posted an article
    Credit Score and Locked Credit Effects on Loan Apps see more

    NAFA member, Adam Meredith, President of AOPA Aviation Finance Company, discusses credit scores and how they affect your loan.

    Depending upon which bucket your score falls into, there are two ways credit score will affect the loan—your interest rate and/or your loan structure.

    Credit doesn't typically have a significant impact on the interest rate associated with an aircraft loan, although it could potentially be a gating issue. In our experience, the biggest way someone's credit score affects the ability to secure a loan is if it's below 700. Broadly speaking, credit score parameters fall into one of four buckets:

    • Under 680
    • 680 to 700
    • 700 to 730
    • And over 730

    Depending upon which bucket your score falls into, there are two ways credit score will affect the loan—your interest rate and/or your loan structure.

    In reality, a 730 score is as good as an 800 score and vice versa. It's a truism not widely discussed. What really matters is a credit score below 680. Below that, deals are difficult to secure.

    Read full article here.

    This article was originally published by AOPA Finance on October 28, 2021.

     

  • NAFA Administrator posted an article
    Do You Arrange "Cash Out" Financing? see more

    NAFA member, Adam Meredith, President of AOPA Aviation Finance Company, answers your aviation finance questions.

    Question: I'm a relatively new private pilot and have a 2018 Cirrus SR20 G6 acquired 11/2020 for $520k through a single-member LLC on leaseback with a flight school (and Cirrus Training Center). The aircraft is starting to generate approximately $10k/month net of costs (~$4-5k). It should continue to generate this revenue as its located in California's climate good for year-round training. Hobbs is at 1440 right now & adding 55-60 hours p/month. I'm considering (re)financing the plane as it was purchased for cash. 

    Is this something I could get a quote on as an AOPA member? Do you arrange "cash-out" financing? 

    Answer: There are two challenges for this particular scenario: 1. The time since cash purchase and 2. The usage.

    In general, lenders are able to consider cash-out financing requests if the purchase was completed in the last 30 days. Some are willing to go up to 90 days max. Beyond that, cash-out financing throws up a red flag to lenders. They will question why cash is needed all of a sudden so long after the original purchase. Lenders want to steer clear of scenarios where borrowers are needing additional cash to support a struggling business. Because of this, lenders set limits on how long after a cash purchase they will consider cash-out financing.

    Click here for full article.

    This article was originally published by AOPA Aviation FInance Company on October 4, 2021.

  • NAFA Administrator posted an article
    NAFA is pleased to announce that Fly-On Aviation Finance has recently joined its network. see more

    FOR IMMEDIATE RELEASE: January 17, 2022                                   

    Contact: Tracey Cheek  

    tlc@nafa.aero 

    405.850.1292 

      

    Fly-On Aviation Finance Joins National Aircraft Finance Association 

    Edgewater, MD – National Aircraft Finance Association (NAFA) is pleased to announce that Fly-On Aviation Finance has recently joined its network of aviation professionals. Fly-On Aviation Finance is an independent aircraft and helicopter finance company with a strong track record of industry experience and a unique expertise to provide a wide range of creative lending options. 

    “NAFA members proudly support general and business aviation aircraft throughout the world and we’re happy to add Fly-On Aviation Finance to our association,” said Jim Blessing, president of NAFA. “As NAFA celebrates our 50th anniversary, we point to the many services our members offer to the public, including the work Fly-On Aviation does in the aircraft management and charter vertical.” 

      

    About Fly-On Aviation Finance: Fly-On Aviation Finance serves the greater Miami and surrounding areas and remains dedicated to serving clients with the highest levels of operating expertise and personable customer service. 

    With more than 15 years of lending experience, Fly-On Aviation Finance provides finance options from short-term bridge loans to capital leases to meet a wide range of aircraft specialized non-traditional financing solutions.  

    About NAFA:  The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences, and industry insights allow member companies to provide the highest quality services the industry has to offer.