How to Qualify for Commercial Aircraft Financing: Requirements, Rates & Application Process
How to Qualify for Commercial Aircraft Financing: Requirements, Rates & Process
Getting a loan or lease for an airplane isn’t just about having good credit. You need to meet lender criteria, present solid financials, and work with banks and leasing companies that actually understand aviation. At Financely, we’ve helped airlines and lessors arrange over $12 billion in aircraft deals. Here’s what you really need to know.
1. What Lenders Look For
- Credit Rating: Most banks and lessors want at least a BBB– equivalent or a history of successfully placing private debt.
- Debt Ratios: Keep total debt under four times your annual EBITDA. Lenders also check that you cover debt service by at least 1.25× with operating cash flow.
- Plane Age & Value: Newer planes (under 10 years old) get more favorable terms. Expect lenders to finance up to 70–80% of the plane’s appraised value.
- Track Record: Three years of consistent operating profits and up-to-date maintenance records.
- Equity Stake: You should put in at least 20% of the aircraft’s cost yourself.
2. Typical Rates & Structures
Rates depend on the lender and loan type. Traditional bank loans price around SOFR + 200–350 bps. If you use export credit agency (ECA) support, you can see rates closer to SOFR + 100–150 bps. Lease financing often comes with fixed-rate schedules over 7–12 years. We can tailor structures—multi-currency, interest-only periods, bullet repayments—to fit your cash flow.
3. Step-by-Step Application
| Step | What Happens | Timeline |
|---|---|---|
| 1 Initial Submission | Send a summary of your company, financial statements, and details on the aircraft. | 1–2 days |
| 2 Term Sheet | We shop your deal to 8–12 aviation lenders and collect term sheets for comparison. | 3–5 days |
| 3 Due Diligence | Provide audits, maintenance logs, appraisals, and legal opinions for lender review. | 10–14 days |
| 4 Approval | Lenders give credit committee sign-off and finalize commitments. | 5–7 days |
| 5 Closing | Sign documents and receive funds or lease delivery. | 2–3 days |
4. Our Lender Network & Track Record
We work with more than 15 banks and leasing houses that specialize in aviation, across North America, Europe, Asia and the Middle East. Over the past decade, we’ve closed deals totaling over $12 billion—everything from single-engine turboprops to wide-body jets. Because we bring multiple lenders to the table, you get competitive pricing and faster offers.
Ready to move forward? Let’s get your financing lined up the right way. Request our detailed process overview and speak with a Financely specialist now.
Explore Our Process & Get StartedKey Takeaways
- Strong credit, solid debt ratios and a real cash stake are non-negotiable.
- Rates typically run SOFR +100 bps (ECA-supported) to +350 bps (bank loans).
- A clear 5-step application can have term sheets in under two weeks.
- Our panel of 15+ aviation lenders and $12 billion in closed deals get you better offers, faster.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
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Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
