In addition to the credit review process, aircraft lenders look closely at the collateral prior to fundings for valuation, cosmetic and mechanical condition, upgrades and modifications, useful life expectancies, market desirability, age and pedigree (U.S. based and owned history or out of country prior ownership), completeness of maintenance record, and title status (for liens, encumbrances or “clouds”) and any damage history.

Aircraft values are primarily determined by the lenders internally utilizing industry standard price guides, reviewing current similar aircraft comparable sales and listings, and at times, through third party accredited aircraft professional appraisals.

Issues that adversely affect values include high time airframes and/or engine(s), missing maintenance logbooks, prior damage history (extent and timeframe of accidents and incidents), ownership history outside U.S. (non-English maintenance records), airframe corrosion, old avionics, poor cosmetics, aircraft not utilized for long periods of time, overdue or long period since engine(s) last overhauled, quality of overhauls, parts availability (manufacturer still in business) among other things.

Items that aid in increased values include recent paint/interior/avionics upgrades, low time recently overhauled engines from reputable shops, engine hourly maintenance programs (turbine aircraft), well documented maintenance records, and low airframe hours.

Learn More about Banterra’s Aircraft Financing Programs here.