The International Civil Aviation Organisation has been commemorating December 7 as International Civil Aviation Day and in 1996 the day was officially proclaimed by the United Nations General Assembly. In Australia, we noted the day received a mention by organisations such as the Bureau of Meteorology. With over 4 billion passengers carried on the international network each year and supporting in excess of 65 million jobs globally it is a critical part of both the Australian and global economy. To focus on the contribution of the sector and support available for businesses in aviation we provide an update on the opportunities and options available for aviation finance.
Civil aviation encompasses both commercial and private aviation, essentially all non-military operators, and Jade Equipment Finance provides lending services in the sector for a wide range of aircraft and ancillary equipment..
In Australia, with both international and interstate border closures due to COVID-19, the commercial aviation sector has taken a bigger hit than many other industries over the past few years. The commercial sector comprises both the major airlines and the myriad of smaller operators active in tourism, transport, freight, pilot training and similar areas.
International Civil Aviation Day
According to the United Nations, the purpose of this day is to generate and further reinforce an awareness on a worldwide basis, the importance of the sector to the economic and the social development of countries and globally. In addition it recognises the role of the International Civil Aviation Organisation to foster cooperation to realise a global transport network as a service to all of mankind.
Each five years a new theme for the day is adopted and the current theme is Advancing Innovation for Global Aviation Development.
Investing in New Aircraft and Equipment
Hard-hit by the pandemic, in order to invest in aviation innovation to develop their business, many operators will require a cost-effective, low-rate and reliable source of finance. Jade Equipment Finance supports aviation operators with our comprehensive range of finance products and broker-style lender services.
With the diverse lender market in Australia, businesses can benefit greatly in terms of cheaper finance, by having knowledge of and access to specialist lenders in their particular sector. Jade Equipment Finance facilitates this access to specialist aviation finance lenders as we are accredited with a vast range of both banks and non-bank lenders.
While business can approach many lenders directly themselves, there are non-bank lenders that are not directly available to customers. Access to these is via finance industry channels and specialists including lenders like Jade.
In addition to providing these access, our consultants source the cheapest aviation finance deal from across our network of lenders and provide specialist expertise in structuring what is sometimes complex loans by handling the negotiations with the lender.
For those considering investing in new aircraft or additional equipment to support operations, engaging us to handle the finance can reap significant benefits. We provide finance for aircraft, terminal equipment, loading and unloading equipment for freight and passengers, IT and technical equipment both in the aircraft and in the business as well as the myriad of other types of equipment required by aviation operators.
Finance Interest Rates
Interest rates are key to achieving the cheapest aviation finance possible. At the December board meeting, the RBA once again left the official cash rate on hold. For businesses seeking finance, that means a continuation, at least for now, of very attractive borrowing rates in many sectors.
The interest rate on equipment finance will vary across industries and across finance products. While many banks may not be totally negotiable on rates due to the guidelines associated with their lending status, many of our specialist non-bank lenders are quite flexible in this regard.
Aviation Finance Products
We appreciate that aircraft are acquired by both businesses for use in commercial operations and by private individuals for recreational and personal transport. As such we provide both business finance products and personal aircraft loans.
Business aviation finance products include:
- Chattel Mortgage
- Commercial Hire Purchase
- Rent to Own
The interest rates do vary across the range of equipment finance and those seeking a rough estimate of possible repayments prior to selection of loan type can refer to our Interest Rate Comparison Calculator. For more detailed planning, refer to our Equipment Finance Calculator which also allows for the inclusion of a balloon in the calculations.
Personal loans for the acquisition of private aircraft include Secured Aircraft Loans. As Jade Equipment Finance primarily deals with business finance, this loan type is not detailed on this website but can be arranged through our consultants.
Bad and Poor Credit Finance
One of the major disappointments for many in the general aviation and tourism sector has been the significant impacts on their business finances. While Government support may have been helpful to keep many afloat, there will be some that have been left with poor credit ratings and outcomes.
Bad and poor credit can seriously impair the prospects of a business securing cost-effective finance. While many lenders do not offer Bad Credit Aviation Finance, Jade Equipment Finance will assist businesses with sourcing possible solutions through our specialist lender channels.
We acknowledge the critical role played by the civil aviation sector and support businesses with cheap and workable finance solutions to invest and upgrade equipment in their operations.
To discuss aviation finance options for your business, speak with a Jade Equipment Finance consultant on 1300 000 003
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.