Hectocorn Jet Finance
Owning a private jet is the ultimate convenience and often the only way to travel for busy ultra-high-net-worth individuals. This luxury vehicle is an option for very few people, but frequent flyers, business owners, and high-profile figures alike can gain countless benefits from owning a jet.
Purchasing your own private jet allows you to travel in comfort as and when your busy schedule requires. That means no more hours wasted in airport lounges for commercial flights; you can simply step straight onto your private jet.
However, obtaining finance to purchase a jet can be a complex process, not least due to the significant costs involved. A long-range jet with ample cabin space could cost a minimum of $15 million, but it is likely to cost well in advance of that figure. So, in most cases, obtaining jet finance is the best option to purchase an aircraft.
The interest rates and loan terms of a jet finance deal will be defined by the model of the jet being purchased, how you plan to use it, and the vehicle’s overall condition.
But finding and negotiating with providers that specialise in this niche market can be challenging. For instance, large banks are unlikely to offer loans specifically targeted towards aviation and don’t have the expertise required to provide you with the best jet finance deal.
Securing the best jet finance terms for your specific financial situation and requirements is critical. So you need to work with an experienced partner with access to the leading aviation industry players.
One of the most common questions we hear from clients looking to purchase a plane is, “Do I have to place assets under management to buy a jet?” The short answer is “no,” but this option comes with criteria that lenders will require you to meet to allow you to purchase a jet on finance.
There are two approaches to buying a jet. The first is known as a “dry solution,” which means you don’t put any assets under management (AUM), but instead solely use the jet as collateral. The second option is to use assets under management, which means you use the plane as security in addition to AUM to obtain the best deal possible from a lender.
Obtaining jet finance also relies on working with specialist brokers that operate in this niche industry and can provide aviation-specific loans. But getting the right deal that matches your personal jet requirements can be challenging to negotiate directly.
Hectocorn’s jet finance makes this often complex process convenient and straightforward. We deal directly with lenders in this niche market to secure the best terms and rates for your specific needs and requirements.
Our team of experts saves you the time, money and often unnecessary expense required to deal with these specialist providers. And our extensive experience both in the aviation industry and working with private banking services help you gain the best possible deal for identifying and purchasing a private jet.
Hectocorn’s jet finance offering focuses primarily on developed economies across Western Europe, the United States and the UK, as well as Australia, Hong Kong, India, Japan, New Zealand, Singapore and the United Arab Emirates. We also cater to individuals in countries like China, Indonesia and Thailand.
We specialise in long-range vehicles with large cabin sectors and aircraft with a maximum age of 15 years at the end of a term. This includes aircraft manufacturers like Gulfstream’s G700, G650, G600, G500 models, Bombardier’s Global 7500, 6500 and 5500 models and Challenger 3500 models, and Dassault’s Falcon 8X, 7X, 6X, 5X and F2000LXS fleet. We can also work with smaller aircraft models, such as Embraer’s Praetor and Phenom aircraft and Cessna’s Citation.
Crucially, our established expertise means we don’t always require AUMs as part of the jet finance transaction structure. This insight gives us a significant advantage compared to the private bank approach, allowing us to cast a wider net and help you maximize the leverage you obtain on your asset.
We offer fixed and floating-rate jet finance deals, as well as construction installments for new aircraft. A typical tenure is five to seven years, and debt financing is by far our most popular product with clients. But we’ll also offer a range of loan terms and finance structures to help you get the most appropriate deal for your specific requirements.
For example, Hectocorn’s established relationship with trusted lenders enables us to arrange loan-to-value deals of around 85%. It also allows us to negotiate highly competitive rates, which are typically sub 250 basis points (BPS), which is used to measure interest rates and equates to around 2.5%.
Hectocorn also has a network of established relationships with leading players across the jet finance industry. This network includes jet dealers, acquisition advisers, maintenance and management companies and aviation prosecution, all of which will prove crucial to your jet ownership. We also have experience brokering private aircraft finance deals and negotiating with jet builders and regional and international aircraft advisers.
Hectocorn’s compelling jet finance product offers high LTVs and competitive rates and doesn’t require AUMs. We specialise in working with large corporates and people with a net worth of at least $250 million and individuals in the billionaire class who have good liquidity and cash flow and are reputationally sound. This enables us to provide full disclosure for credit and know your customer purposes.
By working with Hectocorn, you’ll gain access to our network of global players across the jet production, delivery and operation process, as well as leading, specialist assurance, tax and legal advisors. And you’ll be able to get a quicker decision than standard bank financing, including all legal frameworks and documentation being completed on your behalf.
Discover how Hectocorn can help you join the elite club of private jet owners and secure the best jet finance deal.