Aircraft Financing

Aircraft financing is a loan or lease used to purchase a business or private aircraft — a jet, turboprop, piston airplane, or helicopter — with the aircraft itself serving as the collateral.

What Aircraft Financing Covers

Aircraft financing funds nearly any airworthy aircraft bought for business or personal use, with the aircraft securing the loan. Common categories:

• Business jets — light, mid-size, and heavy jets for corporate flight departments and charter operators.
• Turboprops — single- and twin-engine turboprops for regional business travel and utility missions.
• Piston aircraft — single- and twin-piston airplanes for owner-flown and flight-training use.
• Helicopters — for utility, EMS, tour, and corporate operators.

Financing works for both new deliveries and pre-owned aircraft. Because an aircraft holds value and is a well-understood asset class, lenders can underwrite it efficiently once the airframe, engine times, and logs check out.

Loan vs. Lease — and How Aircraft Financing Is Structured

There are two main ways to finance an aircraft, and the right one depends on how long you will keep it and your tax situation:

• Aircraft loan. You own the aircraft and build equity; the loan is secured by the airframe. Best when you plan to hold the aircraft for years. Terms are commonly structured over several years with a balloon, since aircraft outlast typical loan terms.
• Aircraft lease. Lower upfront cost and off-balance-sheet treatment; a fit when you cycle aircraft or want to preserve capital. An operating lease keeps the residual risk with the lessor.

Rates can be fixed or floating, and structures range from full-payout loans to balloon notes and leases. A larger down payment, a newer airframe, and strong operator financials all improve terms. get matched with lenders to compare structures for your mission.

Rates, Terms, and Down Payment

Aircraft financing terms track the asset and the borrower:

• Down payment commonly runs 10–20%+, lower for newer jets with strong buyers and higher for older or specialized airframes.
• Term is often structured over the useful life with a balloon — aircraft are long-lived assets, so financing rarely fully amortizes in a few years.
• Rate depends on credit, the aircraft's age and type, and whether it is fixed or floating.
• Collateral is the aircraft, verified through logs, engine/airframe times, a pre-buy inspection, and often an appraisal.

Because aviation lenders specialize, matching your deal to the right lender is what gets the best terms — a corporate jet, a training piston, and a utility helicopter are underwritten very differently.

How to Qualify for Aircraft Financing

Lenders underwrite both the aircraft and the borrower. Expect them to weigh:

1. The aircraft. Type, age, total time, engine program status, damage history, and logs. A clean, well-maintained airframe on an engine program finances most easily.
2. The borrower or operator. Business and personal credit, financials, and — for business aircraft — the company's cash flow and use case.
3. Down payment / equity. Your contribution to the deal.
4. Use and mission. Corporate, charter (Part 135), personal, or training — each shapes structure and lender fit.

A pre-buy inspection and current logs move approvals fastest.

New vs. Used Aircraft Financing

Both new and pre-owned aircraft finance readily, but the deal differs. New aircraft from the manufacturer have clear value, a warranty, and often the best terms and lowest down payment. Pre-owned aircraft are more common and cost less, but lenders weigh age, total time, engine program status, and inspection results — a pre-buy is essential. Many buyers finance a well-maintained used aircraft on an engine program to balance cost and financeability.

A Real Aircraft Financing Example

Say a company is buying a pre-owned light jet for $3,000,000 with 20% down ($600,000). A common structure finances the remaining $2.4M over, say, 10 years with a balloon — keeping the monthly payment manageable while the aircraft, which will fly for decades, is not force-amortized in a handful of years. The lender confirms value through logs, engine-program status, an appraisal, and a pre-buy inspection. A newer airframe or a larger down payment would lower the rate; an older or specialized aircraft would raise the down payment. The same deal placed with a lender that specializes in that jet type will almost always beat a generalist bank on both rate and structure.

Compare Aircraft Financing Before You Buy

Aviation lenders vary widely by aircraft type, mission, and appetite — the right lender for a corporate jet is rarely the right one for a training piston or a utility helicopter. Rather than approach banks one at a time, tell us about the aircraft and your mission once and compare real aircraft financing offers side by side, so the rate and structure you get are ones a lender will actually honor.

Aircraft Financing FAQs

Can you finance an aircraft?

Yes. Aircraft financing is a well-established asset class. Business jets, turboprops, piston airplanes, and helicopters can all be financed with a loan or lease secured by the aircraft, for both new and pre-owned purchases. Terms depend on the aircraft type and age, your down payment, and your financials.

What down payment do you need for an aircraft loan?

Down payments commonly run 10 to 20 percent or more. Newer aircraft with strong buyers can see lower down payments, while older or specialized airframes typically require more. A larger down payment improves your rate and approval odds.

What are typical aircraft financing terms?

Because aircraft are long-lived assets, financing is often structured over several years with a balloon rather than fully amortizing, and rates can be fixed or floating. The exact term depends on the aircraft type and age, the down payment, and the borrower or operator strength.

Can you finance a used aircraft or helicopter?

Yes. Pre-owned aircraft and helicopters are financed regularly. Lenders weigh the age, total time, engine program status, damage history, and a pre-buy inspection. A well-maintained airframe with current logs finances much more easily.

How do you get the best aircraft financing?

Match your deal to a lender that specializes in your aircraft type and mission — a corporate jet, a training piston, and a utility helicopter are underwritten very differently. Comparing multiple aviation lenders on structure, rate, and down payment from one application is the fastest way to the best terms.