Trouble getting a loan? Not really – indeed not at all!
I secured a business loan for my company based solely on my Lancair ES-P.
The “used aircraft” value at the time was $375,000. I had the hull insurance at $300k and that was the line granted by the lender.
Never had a problem renewing insurance and Skysmith shopped to ensure my rates stayed reasonable.
Robert Simon
Lancair ES-P N301ES
From: Hamid Wasti [mailto:hwasti@lm50.com]
Sent: Tuesday, February 18, 2014 6:47 AM
To: Lancair Mailing List
Subject: Re: [LML] wanted to buy lancair ES
On 2/17/2014 1:18 PM, Dr. Jamie Fettig DC wrote:
Having troule getting financed for experiemental plane (even though I got approved for $200k on a colubmia 350)
The reason you will have a really hard time getting a loan against a homebuilt aircraft is insurance.
If you are planning to use the the aircraft as a collateral, the lender will want to protect that collateral by requiring that the aircraft be insured. All risk hull insurance for a homebuilt aircraft is expensive and unreliable. Even if you are able to get
insurance this year, there is no reasonable expectation that you will be able to get it next year or a few years from now.
Your only hope for financing a homebuilt aircraft is to get a loan against some other asset or an unsecured loan.
Regards,
Hamid