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Business aircraft financing

Can you finance aircraft?

Yes, you can shop around for the best rate


How does aircraft finance work?

In a basic secured loan structure, a lender makes a loan to an airline or leasing company to purchase an aircraft from a manufacturer (if new) or seller (if used). The loan is secured by a mortgage or other security interest over the aircraft. The airline or leasing company owns the aircraft from the outset.


What are current aircraft loan rates?

Aircraft Category         Down Payment Sample Rates*

Piston Twin                 20-30%         5.95-6.50%

Turboprop & Turbine      15-25%         <4.00-5.00%

Helicopters                  20-30%         5.00-6.50%

Warbirds / Antiques   30%         5.50-6.50%


Do people finance private jets?

With a personal loan, you can borrow money from a bank or credit union to pay for the jet up front, then repay the loan over time. However, getting a personal loan for a private jet is much more difficult than getting one for a new car.


What credit score do you need to buy an airplane?

CLOSE ON YOUR FIRST AIRCRAFT

At a minimum, you'll need a 15-20% down payment, plus 18 months of payments in liquid assets and a credit score of no less than 700 to be considered.


What is aircraft financing and leasing?

Operating lease is the most common form of financing. The leasing company uses its capital to buy an aircraft and provide it to the operator in exchange for being paid for its use on a monthly or yearly basis. The ownership lies with the leaser. Usually, it is a short-term recourse not exceeding ten years.


How long can you finance aircraft for?

How many years can you finance an airplane? Usually, the longest financing term is 20 years. Older aircraft may have a limit of 10 to 20 years. You can also arrange a 20-year amortization on a five-year balloon payment purchase.

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