Financing an aircraft is a structuring question, not a rate question
An aircraft is an asset most lenders rarely see, and that unfamiliarity is the thing to plan around. The question is rarely "can I get aircraft finance"; it is "which lender's policy is comfortable with this airframe, this purpose and this borrower, and how should the facility be structured so it holds up over the life of the asset." Get that part right and the rate tends to follow.
What you are financing matters as much as who is financing it. A single-engine piston, a multi-engine aircraft, a helicopter, and a jet or transport category aircraft each read differently to a lender. Age, hours, type, intended use (private versus commercial charter or business operations) and the depth of the resale market all feed into how a lender prices and terms the deal. Some financiers have a genuine appetite for general aviation; many do not, and pushing an aircraft application through a lender with no policy for it wastes time and leaves marks on your file. Matching the asset to a willing lender at the outset is most of the work.
Business finance, personal finance, and which path fits
Aircraft are funded through both business and consumer credit, and the right path depends on how the aircraft is owned and used. Where the aircraft sits inside a business or is used to produce income, a chattel mortgage or commercial finance facility is usually the natural fit, and the structure can carry tax and cashflow consequences worth confirming with your accountant before you commit. Where the purchase is personal, a secured loan against the aircraft is the more common route. Indicative terms differ between the two, as do the documents a lender will ask for — financials and business history on the commercial side, income and position on the personal side.
Turnaround varies with complexity. Straightforward facilities can move quickly; the sharper-priced products and larger commercial deals take longer because the lender does more diligence on the asset and the borrower. Speed and price tend to pull against each other, so it is worth deciding early which one matters more for your situation rather than chasing the fastest approval by default.
Using home equity instead of asset finance
For some buyers, the cheaper path is not aircraft finance at all. If you hold equity in your home, releasing funds through a refinance can be a lower-cost way to fund the purchase, and consolidating existing obligations into a single facility at the same time can simplify your monthly position. This is not the right answer for everyone — it moves the debt onto your home and changes the term and security — but it belongs on the table. Weighing asset finance against an equity release is exactly the kind of comparison worth running before you sign anything, ideally alongside your accountant where the aircraft is held in a business.
Book a strategy session and we will map the asset, the ownership structure and the lenders that actually fit before any application goes near a credit file.
General information only — not personal financial product or credit advice. Lending is subject to each lender's policy, your full circumstances and responsible-lending assessment. AeFin is an Australian Credit Representative (CR 464548) of Finsure (ACL 384704).