9Aplus
14th Apr 2009, 20:02
Have you heard recently about interest rates for helicopter
financing within old Europe or USA.
Good or Bad experience?
Any recommendation?
For $3M and more.....
61 Lafite
15th Apr 2009, 08:14
"Company 1"sent me an email recently stating that is remains company policy to apply a 3% mandatory collar on the bank of england interest rates, so you get no benefit of low bank of england/libor because the minimum is their margin + 3%, not their margin + 0.5%. They seem to be achieving low repayment rates by having a high balloon payment, but when you work out the cost of finance over the term it's a lot.
That kind of removes the benefit of the low bank interest rates, and opens a whole area about greedy and arrogant financial institutions I could bitch on about for hours.
"Company 2" have virtually no collar, but the valuations they offered me were not very attractive, the percentage they will finance is lower than others and they won't go too high on the balloon. However the cost of finance over 5 years in the offer they made to me was 2/3 that of Company 1.
What I find pretty disgraceful about all of them is that if you take an offer of finance made say 2 or 3 years ago and look at what they would have made over the period, and compare it to what they are trying to make now, it appears that they are generally looking to make far more money now than back then, using a variety of either higher interest rate margins or a collar.
PM me for more info, amount was about $0.5M.
Lafite
9Aplus
15th Apr 2009, 08:53
TNX Lafite
Your conclusion is my impression too. I was wondering about my location
may be a "problem" but you just explain very same story over in UK.
Recently have one offer from someone who is sitting on brand new
machine for over than 6 months. So offer was 9% interest rate on
7-10 years, 30% down payment and separate management
company to run aircraft. I told them to go and run own business
under that conditions :E
According to my knowledge 6% is fair now, who can offer that?