How Charter Income Affects Finance
Unlike private aircraft, a turboprop operated under AOC generates revenue. Some lenders will incorporate projected or demonstrated charter income into their affordability assessment - meaning the aircraft's own earnings can support the loan, reducing the personal or company income required.
To use charter income in your application, lenders will typically want to see an existing AOC, a management agreement with an approved operator, or a detailed business plan for new operators. We package this evidence for maximum impact.
HP vs Finance Lease for Charter Operators
Hire purchase gives you legal ownership from day one, with the final title passing at end of term. Finance lease keeps the aircraft off your balance sheet - the finance company retains legal ownership during the term - which can simplify VAT recovery and improve your balance sheet ratios.
For VAT-registered charter businesses, finance lease is often more tax-efficient. We work with your accountant to identify the most appropriate structure before approaching lenders.
Lender Appetite for AOC Borrowers
Not all lenders are comfortable with charter operations. Some restrict finance to private use only, while specialist aviation lenders actively seek charter operator clients. We pre-screen lenders for AOC appetite before presenting your case, saving time and protecting your credit profile from unnecessary searches.
Worked Example
Why Doulton Bridging Finance?
We are a specialist aircraft finance broker with access to the whole of the UK market - including lenders not available directly to the public. We handle the packaging, lender negotiations and documentation so you can focus on the aircraft. Our service is transparent, our advice is honest, and we flag any complexities upfront.
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