Financing your Pilatus

With michael j smith, President, Scope Aircraft Finance,

& Chris Graham, Chief Lending Officer, Liberty National Bank

It’s that time of year again when everyone starts thinking about end-of-year taxes, budgeting, and financing. If you’re considering financing a Pilatus aircraft, you may have missed your flight this year, but there’s no time like the present to prepare for 2025.

We reached out to Mike Smith, president of Scope Aircraft Finance, and Chris Graham, Chief Lending Officer at Liberty National Bank, for a look behind the curtain and tips to keep your financing smooth sailing. These banks have aviation-specific lending arms and know a thing or two about financing a Pilatus.

Common hurdles in pilatus financing

One common hurdle is a lack of detail in the initial financial package. A complete package smooths the underwriting process. Another is understanding the timeline. It’s crucial to know what to expect and when. Lastly, choosing a specialized lender can make a big difference. “For the same reason a prospect should use JetSwiss for their acquisition, they should also use a specialized lender who understands the word ‘Pilatus’ or ‘FAA security agreement’ or ‘International Registry,’” Smith explains.

tips to speed up the process

According to Smith, preparation is key for financing. A well-prepared borrower can significantly speed up the process. Clear communication between the borrower and lender is also essential.

Graham believes that a realistic operating budget is crucial. “The cost of the aircraft is just a portion of the affordability.” Understanding the full cost of ownership can help avoid surprises. (Shameless plug: JetSwiss provides aircraft-specific operating cost projections to its clients. Reach out if you’re interested.)

when financing a pilatus, you may want to ask your lender:

• How many Pilatus deals has the lender closed?

• Who approves the loan?

• What’s the process for payments and selling the aircraft?

This should give you a good idea of how familiar your lender is with this specialized process. Graham mentions “Generally, client’s questions center around rate and terms, but often borrowers are unsure of whether they have considered all the costs.” Providing detailed information about the aircraft can help with valuation. A clear plan for aircraft usage can also expedite the process.

conclusion

Financing a Pilatus can be a complex process. JetSwiss provides a handful of proprietary reports that can help with the process of valuation and budgeting for operational costs like our Pilatus Appraisal Report (PAR) and our Maintenance Analysis Examination (MAX). By working with a reputable lender and being well-prepared, you can ensure a smooth flight through financing.