Saturday 11 October 2014

Structured Finance

There are many companies, which offer Structured finance options with tax advantages. The various Structured finance options are single investor leases, leveraged leases, synthetic leases, joint venture, and exim securitized debt .The basic advantage of structured financing is that the costs are competitive with the borrowing costs and one gets a lot of accounting and tax benefits. Other services Some companies also offer engine exchange facilities. One can exchange the old engine with a similar overhauled engine simultaneously, thus saving on time and maintenance costs. This results in greater cost savings and less risk for the aircraft. Many companies are going a step forward and offer services wherever the customer is placed. This results in better performance and less downtime for the customer.

Airport financing This is an upcoming area of aviation finance. The options include a mix of debt and equity. Several companies undertake the development, expansion and up gradation of airports around the world. Finance is available for airport construction or building facilities like cargo terminals and parking structures. Funds are available for financing ground handling and security systems as well.

Aircraft financing centers There are companies, which offer to undertake the entire process of aircraft financing. They offer underwriting, insurance and bank syndication services.They have trained personnel who are expert in the evaluation and drafting of various agreements and prepare customised solutions to get the best loans at the lowest rates possible. These executives conduct thorough research and analysis on the tax and legal issues,corporatisation issues as well as data on aviation shops and equipment providers.

Thus a large range of funding instruments are available depending on the type of aircraft required. A variety of companies are present which offer customised financing depending on the needs of the individual customers.