Businesses providing goods and services do not always receive payment in full ahead of time. Frequently, organizations agree to accept partial payment or to bill for services and goods at a later date. They need written agreements or legal protections to prevent scenarios in which customers or clients abuse those policies by refusing to pay what they owe.
Construction companies and professionals have the option of securing a mechanic’s lien against real property in cases where businesses and homeowners do not pay in full for the delivery of materials or the services rendered by construction professionals. In the aviation sector, several different types of businesses could require an airplane lien.
Hangars and other storage facilities
Unlike boats and cars, which people can store exposed to the elements, airplanes typically require protection from the elements. Between the possible damages caused by heavy winds or hail and the risk of theft, climate-controlled, indoor storage is considered the best option available for airplane owners and businesses with airplane fleets. Those operating hangars and similar storage facilities can potentially seek a lien for unpaid rental costs associated with airplane storage.
Fuel providers
Those operating airplanes do not necessarily have liquid capital on hand to cover the cost of airplane fuel every time they need to refuel. They may have credit arrangements with a company or may simply pay invoices as they receive them from suppliers at airports that they frequent. When companies or individual pilots fall behind on payments for fuel already used, a lien can be a way to ensure they pay what they owe. Most people who regularly fly don’t want to risk losing airplane equity over an unpaid fuel invoice.
Mechanics and parts suppliers
Performing work on damaged or aging aircraft can be a lengthy and costly process. Mechanics may invest dozens of hours into a single repair project, only to have clients ignore their invoices. Parts suppliers may provide expensive components necessary for repairs and may then end up in payment purgatory waiting for the clients to respond to their invoices. Parts suppliers and mechanics can request liens when airplane owners don’t pay for the repairs their planes required or the materials required to perform those repairs.
The act of pursuing an aviation lien is sometimes enough to motivate an airplane owner to fulfill their financial obligations. Other times, lien holders have to move forward with enforcing the liens. Learning more about the rules that govern financial issues in the aviation sector can help businesses and professionals secure the payment they deserve.
