Finance for Business Aviation

What to Consider About Aircraft Financing

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Five Tips to Enhance Your Chances of Securing Aircraft Finance

Aircraft Financing Depends of Aircraft Age Range
Fast Facts

1. Know what aircraft age-range is most likely to attract financing, and with whom.

  • Though some lenders (particularly those who don’t specialize in aviation) are unlikely to finance aircraft over five years old, others will consider aircraft up to ten years or more.
  • Experienced Business Aviation financing firms will factor more into their decision than an aircraft’s model year alone…
Aircraft Financing and Model Performance History

2. A model’s market performance history plays a part in financing decisions…

  • Business aircraft that have been popular in the market will invariably be more likely to qualify for financing.
  • Models with short production runs and low trading volume may be viewed more cautiously by lenders.
Aircraft Financing and Airplane Usage History

3. An aircraft’s previous usage will impact the likelihood of financing.

  • An aircraft is more likely to qualify for financing if it has a lower-than-average usage compared to other aircraft of its make and model.
  • If its usage is significantly higher than average, lenders may worry about its remaining useful life.
Aircraft Financing Depends on Airworthiness of the Aircraft

4. Airworthiness is essential to financing…

  • Aircraft must be in excellent condition with no material damage history (which are assumed to affect reliability and value), irrespective of how comprehensive the repairs may have been.
  • Most lenders favor aircraft enrolled on hourly engine maintenance programs because they mitigate the risk of expensive engine repair costs and guarantee a good standard of upkeep.
Aircraft Financing - Bank Experience is Important

5. What’s the main obstacle to accessing used aircraft financing?

  • Some (non-specialized) lenders struggle with the complex considerations that go into evaluating the risk of financing a used aircraft.
  • Those with expertise in the Business Aviation industry can engage with its complexity and structure a transaction that works for the aircraft.

FAQ: Finance for Business Aviation

Your frequently asked questions about finance for business aircraft answered...
  • Where can you find aircraft financing?

    You can find financing for business aircraft at www.avbuyer.com/services.business-aviation-finance.

    There are several other financing companies based around the world. Borrowers should ideally seek a lender who specializes in their aircraft type, age, and can cater for their particular borrowing needs.

  • What is the interest on aircraft financing?

    Interest rates on aircraft financing can vary from as low as 3.5% to more than 7%, depending on a variety of factors.

    Those factors might include the jurisdiction the aircraft will operate in, an individual's or corporation's credit history, the size of the down payment, and more.

  • How long can you finance an aircraft for?

    Financing for business aircraft can be as short as a couple of years up to ten years or more. The length of a financing agreement could depend on the aircraft's age and its popularity in the pre-owned market, among other factors.

  • Why finance an aircraft transaction?

    A common reason to finance a business aircraft is so that the buyer can avoid tying-up cash that could instead be invested elsewhere, generating a higher return for them.

Service Providers

Services Biz Av Finance 1

Aircraft Finance Corporation

How are we different from other lenders? We are a direct lender. We service, underwrite and portfolio our own loans. Our products of flexible financing solutions are designed to meet the needs of both private and corporate borrowers. Visit our ...

Services Biz Av Finance 1

Global Jet Capital

With over $2.6B in assets under management, Global Jet Capital specializes in financial solutions for the business aircraft market. Capitalized by three global investment firms, and managed by a team of industry veterans, Global Jet Capital has been committed from ...

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Sparfell Aviation Group

Sparfell Aviation Group is a world leader in the field of aviation, providing a one-stop solution for every need. At the core of every service is a true passion and loyalty for aviation and our clients, reflected in our best-in-class ...

Services Biz Av Finance 1

1st Source Bank

Whether you're buying a personal aircraft or upgrading, the aviation lenders at 1st Source - experts in aircraft financing - can give you the right advice & the right financing to get you airborne fast. Whether you are a first time ...

Industry Experts

  • Rohit Jaggi

    Rohit Jaggi holds airplane and helicopter licenses and frequently conducts flight tests of airplanes...

  • René Armas Maes

    René Armas Maes is an International consultant and aviation professional with a broad experience in ...

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