Recalculating (Today's Finance Market)

Do you have one of those GPS's that sit on the dashboard of your car - the ones that have been so popular for the last few years? You know - the GPS units that tell you how to get to the Grocery store that you've been otherwise driving to for the past 12 years without any navigational aid. It's particularly frustrating when you take that left turn for the shortcut that bypasses the traffic light - and the GPS starts chirping "recalculating". Recalculating... recalculating... recalculating she constantly chirps, until you either show her there's a better way, get back on course, or throw the GPS out the window. Either way, you know the best way to get there regardless of her chirping.

Therein lies the state of aircraft financing today. The rate market and bank appetites are constantly recalculating, and we can either rely on our own business experience and the reality of our individual situations to see the way forward, or listen to the "chirping" we're constantly hearing that is eroding our confidence.

To clear up current rumors, below are 4 tips for keeping your sanity today:

1. We have money!!! There's plenty of money available to write aircraft loans. Yes, there is a shortage of funds available for financing in some segments of the market, and a few aircraft finance sources have scaled-back or shut-down this year. But the fact remains that there is a strong network of finance institutions (including ours of course!) that have capital ready and available to lend today.

2. Rate Turbulence: Interest rates are very fluid right now. Clients can lock an interest rate today for up to 30 days - so if the rate increases, the client is protected for up to 30 days after approval. What happens if the rates drop dramatically after the client takes delivery of their airplane? No problem - refinance at the new lower rates, in most cases without a pre-pay fee.

3. Stay Smart: Financing is a good financial decision especially in today's market. Aircraft financing is more popular right now given the losses investment portfolios are sustaining. Those losses aren't realized until a client cashes-out of the stocks, so ride it out and finance your aircraft purchase.

4. Don't Panic! Financing is available for most of the market's demands. Historically, aircraft purchasers are higher net-worth and A-credit buyers. Financing for this historical buyer remains readily available today. The interest rates are still exceptionally low compared to historical averages, and business buyers find 2009 to be an incredible tax environment. So remain cool, don't listen to the chirping, and trust your instincts to get you into the left seat.