Flight schools play a vital role in training the pilots of the future. But they often struggle to stay in business due to tight profit margins, huge monthly expenses, and the inability to devote more cash to attracting students. Like any other business, the high amount of money flight schools take in is merely a notion of the high costs of keeping them open.
Insurance policies for the typical aircraft used by flight schools cost around $5,000, and repairing them can cost even more. Since most of the school’s planes are likely of the same age and model, there’s a good chance multiple planes will need repairs simultaneously. This eats up funding that would have otherwise been spent on upgrades, crucial for maintaining a technologically up-to-date reputation.
As if there wasn’t enough pressure on revenue, an unforeseen bout of bad weather can cancel training sessions needed to cover upcoming expenses. Cash flow might not be as big of an issue if flight schools could easily attract new students. But you can’t expect pilots and aviation experts to be marketing wizards as well. And they are usually too busy teaching to scour the industry for cheap parts and other ways to save money.
At United Capital Source, we are very proud to facilitate Small Business Loans for Flight Schools. Contact us today for your FREE business funding consultation!
United Capital Source specializes in working capital loans that offset the rising monthly expenses of flight schools. Besides covering the costs of marketing, new equipment, and other necessary expenses, the extra funding helps businesses preserve profit margins by making large payments right away. The longer a business waits to fix a lingering issue, the more damage it does to profit margins.
Some working capital loans do not require perfect cash flow to be approved. Borrowers can access funding when business is slow due to external circumstances, like the weather.
One of our flight school clients needed funding to repair one plane and purchase a brand new one. This is the kind of luck flight school owners are accustomed to: If one plane has a problem, there’s a high chance another massive expense will arise at the same time. Monthly expenses remained high, but there were not enough customer deposits to pay for the repairs and new planes. United Capital Source arranged a working capital loan that allowed the client to cover both costs without endangering its ability to pay monthly expenses in the coming months.
Many UCS clients also use working capital loans to market themselves amid fluctuating revenue continuously. This is because we can negotiate terms in which the largest payments are postponed until the peak season for revenue. Flight schools do most of their work during warmer months. With the right business funding program, a school could advertise in the months leading up to the busy season and pay off the debt with the increased revenue they eventually receive.
We understand that flight school owners don’t usually have the time to compile stacks of application-related paperwork or endure the tedious back-and-forth communication associated with traditional small business loans. But our application processes are so quick and seamless that they can be worked into even the most chaotic of day-to-day schedules. Apply now to see how much you qualify for!
|LOAN TYPES||MAX AMOUNTS||RATES||SPEED|
|Merchant Cash Advances||$5k – $1m||Starting at 1-6% p/mo||1-2 business days|
|SBA Loan||$50k-$5.5m||Starting at Prime + 2.75%||8-12 weeks|
|Business Term Loan||$10k to $5m||Starting at 1-4% p/mo||1-3 business days|
|Business Line of Credit||$1k to $1m||Starting at 1% p/mo||1-3 business days|
|Receivables/Invoice Financing||$10k-$10m||Starting at 1% p/mo||1-2 weeks|
|Equipment Financing||Up to $5m per piece||Starting at 3.5% (SBA)||3-10+ business days|
|Revenue Based Business Loans||$5K – $1m||Starting at 1-6% p/mo||1-2 business days|