Industry experts discuss with Felipe Reisch how today’s aircraft financing solutions can support a healthier cash flow, greater financial flexibility, and a more strategic long-term aircraft ownership.
Purchasing a business aircraft is often viewed as a significant capital investment, but the way that investment is financed can have implications extending well beyond the acquisition itself. After all, for many buyers, aircraft financing is not just about reducing the upfront cost.
When structured appropriately, aircraft finance can become an important tool for preserving liquidity, supporting business growth, and maintaining greater control over cash flow throughout the ownership cycle.
Don’t Treat Aircraft Finance as a ‘One-Size-Fits-All’
There is no universal financing structure that works for every aircraft acquisition. The right solution depends on the buyer’s financial position, operational requirements, ownership objectives and long-term business strategy.
In fact, many aircraft buyers can afford to purchase their plane in cash, but that doesn’t automatically mean cash is the most efficient use of capital, notes Alex Kowtun, Co-Founder at Palm Beach Jets. “Financing can allow the buyer to preserve working capital for operating needs, acquisitions, inventory, hiring, growth initiatives, or reserves for the aircraft itself.”
Hannah Davis, Vice President of Sales, Mid-Atlantic/Southeast US at Global Jet, believes that financing changes the game by transforming a massive, lump-sum capital expenditure into a predictable, structured operating expense.
“By preserving that liquidity, companies maintain the financial flexibility to respond to market opportunities or navigate economic downturns, all while securing the critical business tool they need to grow.”
She argues that buying a business jet outright ties up a large amount of liquid capital in a highly specialized, depreciating asset. “For high-growth companies or corporate flight departments, that capital almost always generates a higher return when it is reinvested back into core business operations, R&D, or strategic acquisitions.”
Steve Olson, Director of Airplane Finance at Commerce Bank, agrees, noting that while some owners choose to use cash or existing credit facilities to acquire an aircraft, financing secured by the aircraft itself can preserve liquidity and maintain borrowing capacity for other strategic investments, acquisitions, or operational needs.
“Because business aircraft are often owned for five to 10 years or more, financing can be structured to align with anticipated ownership periods and the aircraft’s depreciation profile,” he adds. This enables organizations to maintain greater financial flexibility while spreading ownership costs over time in a predictable manner.
This article was originally published by AvBuyer on September 7, 2026.