If you are contemplating the purchase of an aircraft, the banks do consider financing the purchase in a similar way to the way in which car financing is handled. Here are the qualifying criteria spelled out by Standard bank on their website here:
Non-Type Certified Aircraft - ZU registered aircraft:
- The aircraft must be 5 years old or younger;
- There must be more than 10 of a aircraft type registered at the SACAA;
- The aircraft must be assembled by the local distributor that is approved at the Civil Aviation Authority. We will not consider homebuilt kits;
- 20% deposit is required;
- VAT can be funded but must be paid back into the agreement in month four of the repayment plan;
- Maximum repayment period is 60 months
- No Residual Values;
- Aircraft are financed on a Micro-light Instalment sale agreement
- The aircraft must be comprehensively insured for full flight cover for the duration of the finance period.
Information Required on the Aircraft
For valuation purposes and initial application to credit:
Copy of the Aircraft specification sheet, which must include the following:
- Aircraft Type
- Year of manufacture
- Aircraft registration number and serial number
- Latest airframe hours
- Engine hours since major overhaul
- List of additional avionics
- Damage history
- For brand new aircraft we merely require a copy of the purchase agreement between the client and the supplier.
- Copy of the pro-forma invoice
- If the aircraft will be used to generate income, please provide a copy of the operating contract or utilisation agreement.
Prior to payout:
- Copy of Certificate of Registration
- Copy of Certificate of Airworthiness
- Copy of latest Certificate of Release to Service
- Copy of aircraft Radio Licence
- Letter confirming who will conduct the maintenance on the aircraft with the relevant AMO number stated on this letter.
- Certificate of insurance which must include the following:
- Standard Bank to be noted as First loss payee
- Standard Bank to be noted as Additional Insured
- Breach of Warranty AVN28B/AVN67 B in favour of Standard Bank.
- Insurance to include LSW555C/D
- All geographical areas of operation and uses of aircraft must be covered.
- If Second hand, copy of airframe and engine log books first and last page to confirm the hours on the aircraft specification sheet originally provided as well as the serial numbers.
- Invoice (made out to the client NOT Standard Bank)
Alternative finance also available through Aircraft Finance Corporation.
Check out our new and second hand aircraft for sale on our website here. We will help you through the finance process.