ATPL loans - a 'Business Case'

[Swiss Tony]

I will soon be applying to obtain an unsecured loan to fund my studies for a modular route to an ATPL. To do this I will need to send in a detailed written application, within which I will need to provide some kind of justification, etc., in the form of a 'Business Plan'.

Has anyone had to anything like this before and if so, could they give me some pointers, bearing in mind that this application will go to a board who will decide the outcome and I will have no one-to-one interview to put my communication across.

All help very gratefully received!!

Thanks in advance,

Swiss Tony

[bow5]

Never having done one I can't technically help you but for god's sake DO NOT sign it Swiss Tony! :D

[Harvey SM]

Swiss Tony,
keep it simple.... just outlay all costs needed, give them a brief description of yourself, much like you would do on a cv. I drew up my business plan using microsoft powerpoint. It's got some excellent methods of presentation. Obviously I can only speak for myself, but banks usually want some kind of security for the loan (however a mate of mine secured £25 with HSBC unsecured!) My loan was for a little bit more (with HSBC) and luckily my parents secured it for me. Hope this is of use to you, and if you need anything else more specific just ask :D

[Airprox]

I applied to Lloyds TSB for a proffesional studies loan when I started, mind you it was limited to £10k. I got it but had to prove what the money was for and how I was going to pay it back!

The market was just starting to employ pilots again after the last recession and all the mags had articles so I put them in the proposal.

Good Luck.

[RickPhucked]

This is bit of old info, but i think its still correct. Someone might want to tell me if its not right. because i couldnt find any websites to give me full details.

Postgraduate and Professional courses
Do I qualify?
To apply, you need to be undertaking a postgraduate or professional course of study e.g. MA, MSc, MBA, PhD, commercial pilot's licence etc.

How much can I borrow?
For each yeear of your course you are entitled to borrow all course fees plus living expenses up to the greater of:

up to £5,000 or
two thirds of any salary earned in the last 12 months prior to the start of your course.
The loan will be paid to your bank account in agreed instalments during your studies. However, we can arrange for you to receive more in your first year if you need to cover a large purchase, e.g. course materials or a car.

Your borrowing should not exceed the limits outlined above.

How do I repay?
You will have enough demands on your money just meeting your day-to-day requirements during your course. So, provided you keep to the loan terms, we will not ask you to make any repayments during the course and for six months after you graduate

How much will it cost?
The interest rate is 2% above HSBC Bank base rate. Since this is a variable rate loan, the interest charged by the bank will alter from time to time. This means that when the HSBC Bank base rate rises, the payments will increase, but they will be less when the HSBC base rate falls. Details will be advertised in branches.

Once you start to repay us, the instalments you pay will include interest that has accumulated during the period of your course and the six months after you have completed.

[Gunner B12]

Tony

If this is to be unsecured may I suggest you do the job properly. Treat your self as a business and set out what the expenditure will be and when/how the funds will be drawn down as you may be able to arrange to draw the funds in blocks, only incurring interest from the date drawn. Then you need to predict when returns on the investment will start to come in and what percentage will be assigned to reducing the debt. You will need to factor in possible increases in interest rates and inflation.

Inflation will work in your favour here as the debt will go up with interest but wages can also be predicted to be higher. Predict periods of unemployment as you need to be realistic but also allow for periods working in non related industries as you will be able to allocate some of those funds to the debt reduction. Be realistic leave yourself a living wage but look to minimise the payback time.

It would be worth consulting an accountant if you can afford it as he/she will know how to really present the case. This would put a professional gloss on your application and that in it’s self will swing them in your favour. Also list anything you have done to position yourself in the market place even if it is only joining a local flying club, this shows you have researched your market and are not just trying to live a dream.

Hope this helps and good luck.

:) :) :) :)