Yes, I’m sure you’re right. But even 100k for airframe damage may be small beer compared to a passenger injury. So, to the extent that they’re in business to pay claims, they probably prefer no-injury prangs.
Anecdotally, I read in an AAIB report that a junkyard Seneca veered off runway a few years ago on a short one-way Scottish farm strip. Loss of directional control due to partial brake failure. Arguably, that under-used flying school a/c was just short of a write-off before it took to the air that day, but a contretemps with a young Sitka spruce tree didn’t improve matters. The only time a Sitka could come off worse in that kind of collision is when the aircraft is a Mosquito. Anyway, I gather that the insurer paid agreed value.
I think Close Brothers are one of the more frequent lenders in this sector, particularly for something like a new SR22T. I’m pretty sure the UK Cirrus dealer has done some with them.
Back to the original question: if, as I understand, both prospective owners have a fair amount of cash available but have their reasons for not putting all of it into a plane, perhaps they could consider setting up a limited liability company, partly funded by themselves, then that company could obtain a loan from the bank? That would at the least put the bank on more familiar ground.
There would be quite some aspects to consider, though, many dependent on local law. And I suppose the bank would still require personal warrants, before offering an acceptable rate: it has rightly been stated that an aircraft will have little interest (haha) for them.
Rather than just “the bank”, there are specialized companies like: http://www.ga-partner.com/
NB: I have no affiliation with them, I just saw their add in a magazine. There are probably such companies in every country.
The plane in question has been acquired as a cash only deal as the bank took too long time to figure out if they wanted to deal with it. But, I have another meeting with the bank tomorrow as I’m hoping for a long term financing partner in other cases.
A new question has come up:
With the importation of an aircraft, it has to be de-registered in the country of origin before being allowed a new Norwegian reg. and that poses a problem giving guarantees between the bank and the seller/broker. The bank can’t register mortgage in the plane until it is on Norwegian registration, but the seller will for sure require payment before de-registering the aircraft from the country of origin. With the speed of our CAA this can take weeks.
How is this typically solved? Using some sort of guarantee or deposit?
Off topic, but I hate banks. They only lend to you when you already have all the money and don’t actually need them, incapable to think outside the box. Like a popstar once said about fame and fortune, which applies equally to banks: “When you can finally afford to pay for your own drinks, that’s when they’re all free”.
Useless.
All,
I am digging this topic out of the depth of euroga to ask for recommendation for Finance broker dedicated to GA. I am coming to a project that needs financing, and the one I contacted several years ago told me that he’s not able to finance the case i’m in, (less than 150K). If anyone has recommendation, I would be thankful.
The old mantra of the entrepreneur wishing to get richer than rich;-
“Borrow as much as you can for as long as you can, and pay back at the last possible moment.”
It’s unlikely you will find market or interest for GA lending/financing sub-250k…the brokers & banks will want you to get max 10 years old Cirrus SR2x, Bananza A36 or Diamonds DAxx, anything else is high risk 
It depends on the state of registry. The costs associated with perfecting the lender’s security on an N reg aircraft are so high that they want you to borrow more than £200k. If it is G reg, they will lend much smaller amounts as the CAA have an easy mortgage scheme for placing a charge on an aircraft. Other European states all vary, I know low-value GA aircraft have no such mortgage scheme in Ireland but high-value assets can use provisions under Capetown Convention.
This will all be meat and drink to a good finance broker.
