On April 2, the new tariff plans were made official. As we witness the initial market reactions, I think about all the market dynamics we’ve seen at Scope Aircraft Finance since 1975. Â
As we celebrate 50 years, now under our third generation of leadership and staff, we have some incredible knowledge and history passed down through the generations. Some of that knowledge includes lending fundamentals, which have ensured that we were best able to weather the economic storms and changes over time.
As the market reacts to the tariffs, I continue to reflect on some of those lessons, especially given that we’re in the middle of a very unique economic period.
For example, when I was a young credit analyst, one of our most experienced lenders used to preach to me the importance of “proper, prudent loan structure.” His point was that to be a successful lending organization in the long term, we must operate with “discipline.”
Operating with Discipline
Operating with discipline means many different things as you look at an aircraft loan. It can mean taking the time to making sure the borrower has the right down payment and note repayment structure (known as amortization). It also means making every effort to ensure equity is maintained through the life of the loan.
Discipline further involves staying consistent with our underwriting practices and standards. It means maintaining the same approach during both prosperous times and challenging times.
This concept of discipline isn’t just isolated to aircraft financing.
Across the industry, the most successful organizations are those that have a disciplined mindset to how they conduct business. Their mindset is vital in helping them navigate the economic changes that may result from as tariff and tax policies evolve.
These changing times can also bring incredible purchasing opportunities. If financing an aircraft is part of your purchase process, ensure that you’re working with an organization that understands how to navigate the dynamics of shifting economic conditions.
While no one can predict the future, surrounding yourself with a team who operates with a disciplined mindset will help you set yourself up for the best ownership experience possible.