Aircraft financing is a specialized lending market. Banks, credit unions, and dedicated aviation lenders provide loans secured by the aircraft itself. Terms are competitive — often better than real estate — because aircraft are mobile, insurable, and maintain documented value.
Financing Structure
Down payment: 10–20% of purchase price. Loan term: 10–20 years. Interest rates: competitive, often tied to SOFR or prime. The aircraft serves as collateral. Personal guarantees may be required depending on borrower profile.
Lender Types
National banks with aviation divisions (PNC, US Bank). Specialized aviation finance companies. Regional banks in aviation-heavy markets. Credit unions with aircraft programs.
Qualification
Lenders evaluate: personal net worth, liquidity, credit history, aircraft type and age, and intended use. Most lenders require a minimum net worth of $5–$10 million for large aircraft financing.
Frequently Asked Questions
Typically 10–20% of the purchase price.
Rates are competitive and vary by borrower profile, aircraft type, and market conditions. Fixed and variable options are available.
Yes. Most aircraft loans are for pre-owned aircraft. Lenders may limit financing on older aircraft (typically 20+ years).
2–4 weeks for standard applications. Pre-approval can be obtained before identifying a specific aircraft.
Interest may be deductible. Financing preserves liquidity while still allowing depreciation benefits on the full purchase price. Consult your tax advisor.
Yes. Most aircraft are purchased through LLCs. The loan may require a personal guarantee from the LLC member(s).
Operating leases keep the aircraft off your balance sheet. Capital leases and loans put it on. Each has different tax and accounting implications.
We connect buyers with aviation-specialized lenders as part of our acquisition advisory services.
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