Piper Financial Services has two basic types of programs for commercial or leaseback arrangements. Generally, commercial transactions will require an understanding of the intended use.
Leasebacks and other lighter use commercial transactions. Down payment options range from as low as 10%, however, we recommend 15% to 20% for commercial transactions. Light-use commercial transactions are amortized from to 20 years depending on down payment and usage. The programs closely resemble private use, as they are geared toward the lowest matched shortest commitment term.
Commercial and other heavier use commercial transactions. Heavier use commercial transactions (i.e. flight schools) usually require a minimum of 20% down and typically amortize 10 to 20 years.
Notes:
- Amortization will ultimately depend on intended annual utilization.
- Approval time is typically 2-4 business days after receipt of application and financials.
The goal with commercial/leaseback transactions is to match the anticipated depreciation with the loan term such that the customer does not end up "upside-down" in their aircraft.
Please call 866.427.4737 for the current rates for the above programs, as they change regularly.