First National Capital Case Study


Customer is owned by a high net-worth individual whose primary business is reselling IBM products. The company has very little CAPEX needs throughout the year, but they do utilize the company aircraft as a way to leverage depreciation benefits for tax purposes while generating additional revenue through charter usage.


Many lenders prefer not to work with high net worth individuals for large ticket asset finance– they prefer corporate guarantors and borrowers. The aircraft in discussion was a 22 year-old plane, 12 years older than most lenders are willing to accept. The plane was also heavily chartered. Most lenders won’t finance heavily charted aircraft, since they are subject to rough use and have more flight hours than a normal plane. As a client with many other business ventures, he needed the loan to fund prior to the tax year end in order to capitalize on the proceeds to pay taxes.


With credit approval in only five business days, First National was able to see beyond the roadblocks that stall bank financing by focusing on the credit of the individual. We worked in tandem with our client’s CPA and the management company, to ensure clear communication on requirements for the aircraft loan, FAA registration, and the charter agreement. The loan funded on April 15, perfectly timed to address his other tax-related financial matters.

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