How to Finance an Aircraft in 2026: A Practical Guide for High‑Net‑Worth Buyers and Flight Schools

What is aircraft financing?

Aircraft financing is a loan or lease arrangement that lets a buyer purchase or refinance an airplane using the aircraft itself as collateral.

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Why aircraft financing matters in 2026

The private aviation market saw a 12% increase in transaction volume in 2025, driven by rising wealth and renewed interest in private travel after the pandemic. High‑net‑worth individuals and flight‑school owners are turning to structured loans to preserve liquidity while expanding their fleets. Understanding the current private jet financing rates—which now hover between 5.5% and 7.2% for fixed‑rate terms—helps borrowers lock in competitive terms before rates potentially climb.

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Who can benefit?

Buyer type	Typical loan size	Typical down payment	Preferred lender type
High‑net‑worth individual	$1 M‑$30 M	10‑20%	Private banks, specialty aircraft lenders
Flight‑school owner	$500 k‑$10 M	15‑30%	SBA‑backed lenders, regional banks
Independent contractor (charter)	$250 k‑$5 M	20‑25%	Fixed‑wing aircraft lender comparison sites

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How to finance an airplane: Step‑by‑step

1. Assess your financing purpose – Purchase, expansion, or refinance? Knowing the goal shapes loan structure and term length.
2. Gather documentation – Recent tax returns, personal and business financial statements, aircraft price tag, and a pre‑purchase inspection report.
3. Calculate affordability – Use a loan‑to‑value (LTV) ratio of 70‑80% as a rule of thumb; the remainder is your down payment.
4. Choose the right loan product – Options include conventional term loans, SBA 7(a) or 504 loans, and equipment leasing.
5. Get pre‑qualified – Submit basic info to lenders for a pre‑qualification letter; this does not affect your credit score.
6. Select a lender and negotiate terms – Compare interest rates, fees, repayment schedules, and covenants.
7. Close the loan – Sign the loan agreement, provide the down payment, and complete the title transfer.

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Quick answers

Can I finance a used aircraft? Yes – most lenders will finance a pre‑owned plane, often requiring a 20‑30% down payment and a shorter term.

What is the typical loan‑to‑value ratio? Lenders usually allow up to 80% LTV for new aircraft and around 70% for older models.

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Financing options in detail

1. Conventional term loans

• Fixed‑rate or variable‑rate options.
• Terms: 5‑10 years for jets, 7‑15 years for turboprops.
• Interest rates: 5.5%‑7.2% in 2026 for borrowers with strong credit.

2. SBA 7(a) and 504 loans

• Government‑backed, lower rates (4.75%‑5.75%).
• Up to 90% LTV for qualified aviation businesses.
• Longer amortization (up to 25 years) reduces monthly payments.

3. Equipment leasing

• Off‑balance‑sheet financing; lease payments may be tax‑deductible.
• Ideal for flight schools that want to upgrade aircraft regularly.

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Aircraft loan pre‑qualification 2026

Credit score: Minimum 680 for conventional loans; 660 for SBA loans.

Debt‑to‑income (DTI): Should not exceed 45% of monthly gross income.

Liquidity: Lenders often require liquid assets covering at least 2‑3 months of loan payments.

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Pros and cons of common loan types

Pros

• Fixed‑rate loans lock in predictable payments.
• SBA loans offer lower rates and longer terms.
• Leasing provides flexibility to upgrade aircraft.

Cons

• Conventional loans may need higher down payments.
• SBA loans involve more paperwork and longer approval times.
• Leases can be more expensive over the long term if you intend to keep the aircraft.

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Aircraft refinancing options 2026

Refinancing can reduce your interest rate by 0.5%‑1.0% or extend the loan term, freeing cash flow for operations. Most lenders require a fresh appraisal and a debt‑to‑value ratio under 80%.

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Bottom line

Financing an aircraft in 2026 boils down to matching the right loan product to your credit profile, down‑payment capacity, and operational goals. Whether you’re a wealthy individual buying a jet or a flight school expanding its fleet, pre‑qualifying with multiple lenders and comparing SBA versus conventional terms will secure the most competitive rates.

Ready to see your personalized rates? Check rates now.

Disclosures

This content is for educational purposes only and is not financial advice. airpost.digital may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.