BeechTalk - BT - Financing for MU-2

Username Protected · **Posted:** 17 Aug 2020, 09:24

Does anyone know of a bank that will finance an MU-2? I'm 0 for 2 so far... Thanks!
JD

Username Protected · **Posted:** 17 Aug 2020, 09:37

0 for 3 now

Username Protected · **Posted:** 17 Aug 2020, 09:46

For business or a personal loan?

Username Protected · **Posted:** 17 Aug 2020, 09:49

Username Protected wrote:

For business or a personal loan?

At this point, either/or. Technically the plane will be owned by my company, and I will be flying it for >51% business use. I retained Advocate Tax Consulting to help me with all that. Historically I've just purchased my planes post-tax personal dollars. Two of the reasons we were declined so far was due to age (1980+ for turboprops from one bank, 1986+ on the other). I like to leverage debt in my business so we definitely dont want to pay cash for it.

Username Protected · **Posted:** 17 Aug 2020, 10:19

Username Protected wrote:

for 3 now

Have you tried Dorr Aviation?

"New and Used Airplanes – Age is just a number to us! Unlike many lending institutions who have restrictions on piston aircraft manufactured prior to 1980 or turbine aircraft older than 10 years, we aren’t inhibited by age. We are given more flexibility because we work directly with lenders who trust our experience with aircraft values."

Username Protected · **Posted:** 17 Aug 2020, 10:23

Username Protected wrote:

for 3 now

Have you tried Dorr Aviation?

"New and Used Airplanes – Age is just a number to us! Unlike many lending institutions who have restrictions on piston aircraft manufactured prior to 1980 or turbine aircraft older than 10 years, we aren’t inhibited by age. We are given more flexibility because we work directly with lenders who trust our experience with aircraft values."

Username Protected · **Posted:** 17 Aug 2020, 10:37

Username Protected wrote:

Does anyone know of a bank that will finance an MU-2? I'm 0 for 2 so far... Thanks!
JD

Best bet is a local bank where you can shake hands with the decision maker and the loan is given primarily on your resume and not the repo value of the airplane.

Username Protected · **Posted:** 17 Aug 2020, 10:59

I would get a business line of credit and use that. Or a personal line of credit and make a shareholder loan to the business. I can’t see too many people financing an old airplane and if they do, the rate will be really high compared to a LOC.

Username Protected · **Posted:** 17 Aug 2020, 11:03

Line of credit 4-6% right now, aircraft loan was quoted 3.5 and terms were LONG.

Username Protected · **Posted:** 17 Aug 2020, 12:08

Asked my commercial lender father if he knew of anyone off the top of his head, no. And he does a bit of aviation lending.

Username Protected · **Posted:** 17 Aug 2020, 12:10

Username Protected wrote:

Asked my commercial lender father if he knew of anyone off the top of his head, no. And he does a bit of aviation lending.

Thanks for checking! I have spoken to Dorr Aviation and I'm speaking with my local business banker this afternoon. Fingers crossed, I really want this plane!

Username Protected · **Posted:** 17 Aug 2020, 21:28

Try milehighmoney.com and ask for Dan.

Username Protected · **Posted:** 17 Aug 2020, 21:32

Username Protected wrote:

Try milehighmoney.com and ask for Dan.

Thanks! Will do. Another one Google didn't turn up.

Username Protected · **Posted:** 17 Aug 2020, 21:39

Username Protected wrote:

Does anyone know of a bank that will finance an MU-2? I'm 0 for 2 so far... Thanks!
JD

Best bet is a local bank where you can shake hands with the decision maker and the loan is given primarily on your resume and not the repo value of the airplane.

Username Protected · **Posted:** 17 Aug 2020, 22:00

Username Protected wrote:

I'd second Charles suggestion. A relationship with a community bank and banker, nurtured over the years, makes doing things like this easy. But even if you haven't done that go wherever you bank for business and dig in. Banks have a lot of challenges right now with very low interest, lots of challenging loans and a economy with dismal prospects for small business in the immediate horizon. If you have good personal credit, a business that can support what you want to do and a willingness to offer the bank deposits and the opportunity to assist you with other borrowing the plane should be an easy deal to get done.

Thanks Tony! I spoke with my local banker today and he sounded encouraged that he might be able to get creative on this. I sent him my PFS, spec sheet, and lots of articles on the safety, efficiency, factory support and popularity of the MU-2! Fingers crossed...