Aircraft Loans

Factors that Affect Your Aircraft Financing Loan Terms

When it’s time to secure financing for your aircraft purchase, the lender looks at more than just your income and credit history. When financing an aircraft, the aircraft itself determines some of the conditions of the financing. Here are some factors that lenders look at when financing an aircraft.

It is always a good idea to start looking at financing options when you start the process of looking for an aircraft.


A financing company wants to know you are buying the right airplane for your needs – not more than you need or can handle. The lender also wants to know how you will use your airplane (personal, business, or commercial. The amount of annual hours that you intend to fly the plane can be a factor in financing.

If the aircraft is going to have a high utilization time, then the aircraft with depreciate faster. With more hours, the aircraft is flown there is more wear and tear. For an aircraft that will have high utilization, such as for a charter company (Part 135) the loan is structured to more closely align itself with the faster depreciation. You may be presented with a shorter loan term and a higher down payment.

Some Financial institutions will not fund an aircraft intended for all Part 135 usage.

Some Lenders will require the aircraft to be on an engine maintenance program.


Generally, the older an airplane, the fewer the financing options. Age is much more limiting when buying a turbine airplane or piston twin and will affect your loan term, rate and amortization.


The more comprehensive information you can supply the lender about your airplane, the better your chances of securing good terms for your loan:

Aircraft Specification Sheet
CAMP (CMP) Maintenance Reports
Damage history
Appraisal (If there has been one done)
Complete Log Books


When financing an aircraft, a down payment is required. Most common is a down payment ranging from 10 percent to 20 percent. The amount of the down payment can affect rates, terms and amortization.


Questions for preliminary review:

  • Borrower
  • Address
  • Guarantors
  • Address
  • Aircraft Purchase Price
  • Requested Finance Amount
  • Aircraft Domicile
  • Part 91 or Part 135 Operation
  • Estimated Flight Hours
  • Previously Owned Aircraft
  • Aircraft specifications sheet

For Individual Borrowers:

  • Current personal financial statement (no older than six months), signed and dated
  • The Personal Financial Statement Template Here
  • Last two years’ personal tax returns, including K1s
  • Bank and brokerage statements that verify liquid assets (cash and marketable securities)

For Corporate Borrowers:

  • Last three years’ financial statements
  • Current interim financial statement for the most recent period available