NAFA member Preston Holland, President and Founder of Prestige Aircraft Finance, shares his latest article on lease versus loan.
Key takeaways
There are three main ways to finance an aircraft: a term loan, a finance lease (often still called a capital lease), and an operating lease. Each structures ownership, cash flow, and tax treatment differently. Term loans are best for long-term owners who want equity. Finance/capital leases suit businesses that want depreciation benefits without a large down payment. Operating leases can provide a flexible upgrade path while the lessor retains residual and exit responsibility. The right choice depends on your full picture, not any single checkbox.
This article was originally published by Prestige Aircraft Finance on October 1, 2026.