Developing better capital management strategies is something that many investors and businesses strive to do. By maximizing capital and implementing a solid accounting strategy, a company may experience higher productivity and profits. Additionally, clients who seek to improve their jet capital management plan may benefit from utilizing resources designed to make their businesses run smoothly. The following are a few of the top options in jet capital management, which may serve a variety of businesses in the industry.
The Benefits of Progress Payment Financing
A progress billings system enables a company to finance a project at various stages instead of just once. This practice offers a few major benefits to a client, and perhaps the top benefit is that the client does not need to worry about producing a hefty payment before a project even starts. Additionally, making payments in installments gives the client an opportunity to view the current progress and offer input if needed. A progress payments plan also benefits the company providing services since they aren’t forced to wait for payment until the project is complete. Thus, everyone involved with a particular project may appreciate the option of progress payment financing.
How Mezzanine Financing May Benefit a Client
Mezzanine financing is a strategy that numerous clients prefer. A client secures a loan devised with specific terms: The loan is subordinated to senior debt and junior debt. In the case of jet capital management clients, a client may actually be able to get up to 100% of the financing for the overall cost of an aircraft.
Securing a Capital Lease
A capital lease may be a viable option for a client. This kind of lease (which might also be referred to as a finance lease) enables a lessee to experience some of the advantages of ownership while also agreeing to take on some of the risks associated with being an owner. With this option, financing may even be available for the entire cost of an aircraft. After the lessees pay off all the financing, that client will then own the title to the financed aircraft. In some cases, a client may only be required to initially pay for the down payment, security deposit, and various transaction charges in order to get started.
Getting an Operating Lease
An operating lease is a type of lease that works well for many clients. When a lessee acquires an operating lease, that client does not assume some of the risks and responsibilities of aircraft ownership. Instead, the client leases the aircraft for as long as it is needed; once the term of the lease is over, the client returns the aircraft and is no longer responsible for it. Such lease terms are often for a few years; an example of this is a five-year term lease.
Aircraft ownership and leasing generally involves much capital. Finding viable jet capital management solutions is often a necessary aspect to succeed in the industry. If you seek to implement your jet capital management options, be sure that you are doing so via a reputable company that offers a variety of possibilities.
