Will I Qualify? Credit Requirements for Aircraft Financing

Considering financing an aircraft? There are many aircraft financing options available, covering a wide variety of aircraft, missions, and credit profiles. Working with an aircraft financing broker like The Aircraft Lenders is a great way to ensure you understand all your options, as well as which financing products are the best fit for you. Understanding aircraft loan structures, their rates, and the criteria for approval paves the way to securing the plane of your dreams. Lenders look at a variety of factors when considering a loan application, and understanding what’s needed to qualify can help pave the way to an approval. The Aircraft Lenders is here to help. We pre-underwrite all aircraft financing deals before submitting to any banks of your behalf, matching you to the lender that is most likely to approve you at the best rates and terms for your financial profile and mission.

How to Qualify: What Aircraft Lenders Look For

  • Credit score: Most lenders prefer credit scores of 700+, but there are lenders that will allow lower scores
  • Borrowing experience: Lenders want to see that you have an established credit history. This means they look for you to have installment loans in your credit history that have seasoned for at least two years, with a clean re-payment history during that time.
  • Debt-to-income ratios: Lenders look for a debt-to-income ratio no higher than 40% – 45%, including the new aircraft payment
  • Liquidity: Lenders want to see that you have a good liquid cushion after the down payment. This may be 6-12 months of total debt service coverage, or 1.5 years of aircraft payments etc. They also look for a cushion to cover operating expenses.
  • For commercial loans:
    • Debt-service coverage ratios: lenders look for a debt-service coverage ratio no lower than 1.25
    • Time in business: lenders want to see at least two years of filed tax returns when considering commercial loans
    • Start-ups: There are a few start-up programs available for newer businesses, but these may require higher down payments than usual

Know Your Airplane Financing Options

• Aircraft Loans: Similar to mortgage products, these are the most common form of financing, providing flexibility in terms and conditions.
• Aircraft Leasing – Finance leases: These usually offer 100% financing, and can be lease-to-purchase deals, or sale-leasebacks. These are usually business loans.
• Aircraft Leasing – Operating leases: Suitable for consumers and businesses, akin to a long-term rental.

Aircraft Financing Rates: What to Expect

Airplane financing rates vary by lender and your credit profile. The Aircraft Lenders can help determine which lenders have the best rates and terms for you.

Aviation Finance for Most Types of Aircraft

Aviation financing is available for single-engine and twin-engine piston aircraft, turboprops, jets, helicopters, as well as some light sport aircraft, experimental aircraft, kits, and even gliders. Not all lenders finance all of these types of aircraft, which is why it’s helpful to work with an aircraft financing broker, such as The Aircraft Lenders, that knows the best options for your aircraft, mission, and financial profile.

Let The Aircraft Lenders Help You Achieve Your Dream of Aircraft Ownership

Comprehending your aircraft financing options, understanding the aircraft loan approval criteria, and learning how to navigate the plane finance industry are all crucial aspects of securing the optimal finance option for your aircraft purchase. By understanding these nuances, you are better positioned to not only secure your financing but also to propel your aviation dreams into reality. Contact The Aircraft Lenders at 973-577-4226 or at info@theaircraftlenders.com for more information or to get the process started. And please check out our testimonials page here: https://theaircraftlenders.com/testimonials/