Aircraft Loan Officers review and consider many factors in determining the credit worthiness of applicants.  When a prospect contacts Banterra Bank, they communicate directly with knowledgeable and highly qualified Aircraft Lenders who know how to assist prospective customers navigate the credit process in the most efficient manner. The Credit Application is the first step and allows lenders to pull credit bureau reports. It is anticipated that applicants have a quality credit score generally above 700+ and in a perfect scenario, with no delinquencies, charge-offs, bankruptcies, or other derogatory history. There may be instances when a reasonable explanation can be made for one or two past delinquencies however subject to the discretion of the underwriter.   Other credit history review items include overall historical information within the report, number of recent credit inquiries, past/current high credit limits, recency of new accounts (mortgages, credit cards, installment loans, etc.), number/extent/outstanding balance(s) on revolving-charge card accounts, and overall outstanding reported debt.

The purpose of a Personal Financial Statement (PFS) is to verify applicant’s Assets, Liabilities, and Net Worth.  Assets include and are not limited to verifiable cash on hand, brokerage accounts, cash value of life insurance,  real estate holdings, personal property, etc.  Liabilities include debts owed by applicant i.e. mortgages, installment loans, credit card debt, notes payable to others, secured and unsecured debts, etc.  Net worth is a calculated by taking total Assets minus total liabilities.  The PFS should indicate liquidity (cash reserves-Bank & Brokerage Accounts) along with total outstanding credit obligations along with their corresponding monthly debt payments.  Underwriters review and confirm debts indicated in the applicant’s Credit Bureau Report with those on the PFS to confirm there’s no double reporting of a same debt and to see if there are any additional liabilities not reported on the Credit Bureau.  Federal Tax Returns, both personal 1040’s and business  tax returns are reviewed for total & Gross business Income, depreciation, carry over losses, interest income & interest paid, Business K-1’s, capital gains, etc.   Upon final analysis and income determination, underwriters can accurately calculate the Debt-to-Income Ratio (DTI) of applicants. 

By gathering the below information prior to applying for an aircraft loan, you will be able to speed up the application process:

  • Having a recent Personal Financial Statement completed
  • Most recent two years personal and business tax returns (if self-employed)
  • Obtain current bank & brokerage statements
  • Aircraft specifications or link to listing if an aircraft has been selected

In summary, many factors are considered in making a fair credit decision and include and not limited to, credit bureau analysis and history, net worth of individual and business if applicable, liquidity soundness, total outstanding debt(s) and payment(s) due, and asset quality of collateral.