Banking on growth: JetLoan Capital
Michael Thompson is vice president at JetLoan Capital.
Founded in 2017, JetLoan Capital provides aircraft and yacht financing, using a network of more than 200 banks, credit unions, leasing companies and private equity sources.
The Stuart, Florida-based company provides what it calls a “full spectrum” of aviation finance solutions, including loan origination, refinancing and structured financing for piston, turboprop and jet aircraft.
“What distinguishes JetLoan Capital is our independence and breadth of relationships,” says Michael Thompson, vice president at JetLoan Capital. “We are not tied to a single institution, which allows us to shop each transaction across our network.”
Thompson says the focus is always on structuring terms that align with the client’s objectives, whether that means the most aggressive loan-to-value, the lowest rate or the most flexible prepayment terms. “Since we have already done the legwork of identifying which lender will fit a client’s specific needs – this allows for a fast financing process from start to finish,” adds Thompson.
JetLoan handles the process from end-to-end, including term sheet negotiations, coordination with escrow, insurance, appraisers and attorneys. Also, thanks to its broad lender network, the JetLoan team is able to present multiple financing structures, from cash-flow based underwriting to asset-based options, depending on a borrower’s profile and needs.
According to Thompson, clients are a mix of high-net-worth individuals (HNWI) and large corporations. Historically, HNWIs represented the majority, but he is also seeing steady growth in corporate ownership.
Another notable demographic trend is the rise of first-time buyers entering the market. “These are often entrepreneurs and executives who value flexibility, speed and independence, qualities that have become more important in a post-pandemic environment while airlines become increasingly unreliable,” he explains.
Although sustainability is an increasingly discussed topic within business aviation, it has not been a primary driver in financing decisions among JetLoan Capital clients, notes Thompson. “For most borrowers, operational efficiency, flexibility, and financial terms remain the key considerations, with sustainability playing only a limited role at this stage,” he says.
Reflecting the growth in new clientele, JetLoan Capital would describe business aviation finance as being “in the climb”. “Particularly from first-time buyers who are entering the market as they recognise the productivity and benefits of aircraft ownership,” says Thompson.
Renewed bonus depreciation legislation appears to be a significant driver of purchasing decisions, adding further momentum to overall activity, he adds.
Looking at growth, there is significant opportunity in expanding financing solutions into newer markets, particularly Latin America and parts of Asia where ownership is growing, says Thompson. Domestically, opportunities lie in serving first-time buyers entering the market and providing refinancing options as interest rates normalise.
The most prominent threats are interest rate volatility, residual value uncertainty and broader macroeconomic factors. To mitigate these, lenders and brokers need to focus on conservative loan structures, proactive monitoring of aircraft values and close collaboration with clients to anticipate and address challenges, explains Thompson.
“Flexibility and transparency will be critical in preserving long-term client trust. Additionally, mitigating loan pre-payment penalties can provide protection to clients who wish to refinance later in a downward trending interest rate market,” he says.
