On Thursday, June 6, 2013 4:32:59 PM UTC-4, noel.wade wrote:
Anyone know why US Banks & Aircraft Finance companies are so averse to glider loans? I can get my Sonex aircraft _KIT_ (as a pile of parts on the floor of my garage) financed through NAFCO or others... But when researching loans for my next sailplane they all say "sorry, no can do" as soon as they find out the aircraft doesn't have an engine! Anyone have thoughts, or finance companies they'd recommend? NOTE: I've contacted Lea County State Bank twice. Both times the "SSA- glider-loan-guy" has been out of the office, and the terms their other staff have quoted me haven't been all that impressive... 6% - 10% for 5-7 years is not much better than what I can do with a Personal Unsecured Loan at any reasonable bank. Most collateralized aircraft loans (even for small experimental kits) are on 7 - 15 year terms and 4% - 9%! *sigh* --Noel

Your local bank that has "low" interest loans on cars can do so because they understand exactly what their risk is and how they will recover if the loan goes bad.
Since they don't know anything about what is securing the loan, they don't want the business.
Can't say that I blame them.
My old aircraft banker used to say gliders were his best loans because nobody ever walked away from them.
FWIW
UH