NAFA member, AOPA Finance, shares their latest aircraft finance article.
From credit and cash flow to aircraft type and pilot experience, here’s how lenders evaluate both you and the airplane before approving a loan.
The four main questions to ask about aircraft financing are: What does the process look like? What are the general financial requirements? What are the aircraft requirements? And what are the pilot requirements?
The General Process
Aircraft financing is different than auto or mortgage financing. This is partly due to the size of the aircraft market. For example, if one of the major auto manufacturers delivered only 2,000 units in a year, they would quickly go out of business. Conversely, if an aircraft manufacturer delivered 2,000 aircraft in a single year, it would be a stellar year. Aviation’s small market size affects lending practices.
Where home and auto lenders leverage volume to streamline the process and spread out risk, aircraft lenders are generally required to look more closely at each transaction to account for the perceived risk in a small, niche market. That’s why the process will often include a detailed financial review, as well as an examination of the aircraft, its registration, airworthiness documentation, and its current market value, before a decision is made. When it comes to closing, an escrow company will be involved to make sure all documentation is correctly filed with the FAA, and the transfer of funds is handled appropriately. The closing process for an aircraft loan is similar to that of a mortgage, although it normally doesn’t take as long.
This article was originally published by AOPA Finance on March 27, 2026.