financing

A large proportion of qualified buyers are unable to secure aircraft financing through traditional channels. JSSI Aviation Capital’s Ben Hockenberg discusses how the market is evolving and how more flexible approaches are helping buyers transact more efficiently.

Even when a company or individual has the ability to acquire an aircraft outright, financing can still play an important role, allowing buyers to preserve liquidity, maintain flexibility, and allocate capital across their broader business.

When financing aligns with the aircraft and the buyer's operating reality, it can support more efficient outcomes for all parties involved. This setup aims to have the lender earn returns over a defined term, with the borrower gaining access to the aircraft without unnecessarily constraining capital.

In practice, however, many otherwise qualified buyers find that traditional financing channels don’t always accommodate the specifics of their transaction.

For example, not everyone is in a position to acquire a new or nearly-new aircraft. A sizable portion of buyers shop the slightly older pre-owned aircraft market. Once aircraft age beyond ten years, the pool of willing lenders often becomes meaningfully narrower.

Others can afford newer aircraft but are based in regions that are less well served by established financing channels, or they operate under structures that don’t neatly align with standard underwriting frameworks.

Read full article here

This article was originally published by AvBuyer on May 19, 2026.

NAFA member, AOPA Finance, shares their latest aircraft finance article.

From credit and cash flow to aircraft type and pilot experience, here’s how lenders evaluate both you and the airplane before approving a loan.

The four main questions to ask about aircraft financing are: What does the process look like? What are the general financial requirements? What are the aircraft requirements? And what are the pilot requirements?

The General Process

Aircraft financing is different than auto or mortgage financing. This is partly due to the size of the aircraft market. For example, if one of the major auto manufacturers delivered only 2,000 units in a year, they would quickly go out of business. Conversely, if an aircraft manufacturer delivered 2,000 aircraft in a single year, it would be a stellar year. Aviation’s small market size affects lending practices.

Where home and auto lenders leverage volume to streamline the process and spread out risk, aircraft lenders are generally required to look more closely at each transaction to account for the perceived risk in a small, niche market. That’s why the process will often include a detailed financial review, as well as an examination of the aircraft, its registration, airworthiness documentation, and its current market value, before a decision is made. When it comes to closing, an escrow company will be involved to make sure all documentation is correctly filed with the FAA, and the transfer of funds is handled appropriately. The closing process for an aircraft loan is similar to that of a mortgage, although it normally doesn’t take as long.

Read full article here

This article was originally published by AOPA Finance on March 27, 2026.

Looking to finance an aircraft acquisition? How might your intended mission impact the deal you’re offered? Graham Jarvis gets the lowdown from a selection of industry experts…

Simply put, an aircraft owner’s mission tells the story of how and where an aircraft will be used. For example, it indicates the demand that will be put on the aircraft in terms of how many hours it is expected to be flown, and by whom.

For underwriting as well as for financing purposes, there’s also a need to consider mission risk, including collateral risk, operational risk, jurisdictional and regulatory risk.

According to Tripp Thurston, CFO & Group President of Firecrown Media & COO at FLYING Finance, “a Part 91 personal or private business use mission – where the aircraft will be flown by an experienced pilot, remain within a defined geography and the expected hours of less than six hours per week (300 hours annually) – usually tells a lender that the aircraft is likely to remain in pristine condition for a longer duration.

“In contrast,” he adds, “Part 135 charter operations, small cargo or passenger airlines, and flight schools (Part 141 in particular) will have much higher usage on the airframe, and the pilot may or may not be making the smoothest landings. So, lenders take into account how the airframe will be treated.”

Engine time between overhaul (TBO) is reached more quickly with higher hour use cases, meaning that an airframe will depreciate quicker too.

“Comparing these two scenarios, a lender is likely to offer a longer payment schedule, or amortization, for the lower use Part 91 aircraft purchase, and a shorter amortization for the higher use charter or flight school operation,” Thurston reveals.

Paul Sykes, Director of Originations of EMEA & APAC at JSSI Aviation Capital, claims that highly configured aircraft are a challenge for financiers. “Specialized equipment often drives up the purchase price, but some lenders assign it little or no residual value, and sometimes it can even have a negative effect on value.”

Some configurations may require structural changes, such as cutting into the fuselage. They can be dealbreakers because they alter the structural integrity of the aircraft – including, Sykes says, any potential corrosion points and structural risks.

“For special mission assets like medevac or surveillance, some specialist lessors will lend, but their comfort comes from the underlying operating contracts rather than the aircraft itself.” Nevertheless, Sykes warns, this leaves the problem that if those contracts aren’t renewed, “they can quickly find themselves holding a valuable, heavily amortized asset with limited remarketing options.”

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This article was originally published by AvBuyer on May 14, 2026.

NAFA member Mike Smith, President of Scope Aircraft Finance, shares his latest article in The Plane Truth.

Well, that was a wild start to 2026, wasn’t it? To call these times interesting would be an understatement. What have we learned so far?

1. Interest rates haven’t materially fallen. There was an expectation going into the year that we’d see a 0.5% or higher drop in interest rates from the Federal Reserve; as of now, they’ve held rates steady.
2. Inflation remains sticky. The Iranian War’s impact on energy prices has increased the annualized inflation rate, which isn’t showing signs of reversing anytime soon.
3. Geopolitical dynamics are as obscure as ever. There’s not much point in even commenting here,  the news changes by the minute. As with everything, clarity helps, and until we have it, uncertainty remains.

Read full article here

This article was originally published on April 23, 2026 in Issue 19 of The Plane Truth.

NAFA member Jeff Dunn, Founder of Hawthorne Aero Valuation Services, shares his latest article about where business aviation finance stands right now.

What a week at NAFA in Savannah reinforced about where business aviation finance stands right now.

The mood at the NAFA conference in Savannah this week was one of genuine optimism. Low used inventory, elevated values across many segments, and lenders who by most accounts remain hungry to put money to work. For anyone who lived through the decade-plus of compressed values that followed the financial crisis, the current environment feels like a meaningful shift.

And it is. But it also warrants a clear-eyed look at what's driving it - and what that means for the people financing these assets.

Read full article here

This article was originally published by Hawthorne Aero Valuation Services on April 21, 2026.

NAFA member Mike Smith, President of Scope Aircraft Finance, shares his latest article in The Plane Truth tackling the question every borrower is asking right now — are rates up or down? The answer is more nuanced than you think, and understanding it could shape your next aircraft purchase decision.   

On a recent loan transaction, I was discussing the final loan structure with our borrower when the question of "aren't rates going down?" came up. This was a perfect time for that question, because I knew I had promised our Plane Truth readers that I'd touch on the interest rate environment in my March article.

For those who have been faithful readers (and if this is your first time, welcome, and please tell your friends), you'll recall that in 2025, when I touched on interest rates, I looked at the 10-Year US Treasury rate in our discussions. I reference the 10-Year Treasury because it's a good trend indicator of where rates are going, which is the bigger picture I want to maintain when discussing financing conditions here.

Read full article here

This article was originally published on March 19, 2026 in the March 2026 Issue #18 of The Plane Truth.

Securing finance is a crucial part of many business aircraft transactions. However, unwary borrowers could end up paying more than necessary. Gerrard Cowan asks aviation finance insiders to outline the key areas to consider when financing your business aircraft.

At a high level, the loan terms – such as the interest rate, loan amortization, loan-to-value, etc. – and the creditworthiness of the applicant are the two major factors when it comes to the cost of aircraft financing, according to Mike Francis, Head of Aircraft Finance at Citi Wealth. The higher the rate, the higher the debt service will be.

The ‘resaleability’ of the aircraft is another key factor. “If you have an applicant with weak financials and/or a plane with poor resale-ability, a lender will have to hold more capital reserves for that loan, which nets a higher rate,” Francis explains.

“The associated risk can also cause the lender to offer more conservative financing terms to the applicant.”

Because most aircraft are bought through a single-person LLC, the loan must be guaranteed by a person or entity with the requisite credit to underwrite the loan, says Ford von Weise, CEO of Sankaty Jet Capital. The credit quality of this ‘guarantor’ is the most important factor, he adds.

While a lower loan-to-value may impact the overall cost of financing, “the ultimate risk rating of the underlying guarantor determines the amount of [collateral] to be held in reserve for that loan, which has a large impact on the underlying cost of capital to the lender,” von Weise explains.

Read full article here

This article was originally published by AvBuyer on March 11, 2026.

Securing finance is a crucial part of many business aircraft transactions. However, unwary borrowers could end up paying more than necessary. Gerrard Cowan asks aviation finance insiders to outline the key areas to consider when financing your business aircraft.

At a high level, the loan terms – such as the interest rate, loan amortization, loan-to-value, etc. – and the creditworthiness of the applicant are the two major factors when it comes to the cost of aircraft financing, according to Mike Francis, Head of Aircraft Finance at Citi Wealth. The higher the rate, the higher the debt service will be.

The ‘resaleability’ of the aircraft is another key factor. “If you have an applicant with weak financials and/or a plane with poor resale-ability, a lender will have to hold more capital reserves for that loan, which nets a higher rate,” Francis explains.

“The associated risk can also cause the lender to offer more conservative financing terms to the applicant.”

Because most aircraft are bought through a single-person LLC, the loan must be guaranteed by a person or entity with the requisite credit to underwrite the loan, says Ford von Weise, CEO of Sankaty Jet Capital. The credit quality of this ‘guarantor’ is the most important factor, he adds.

While a lower loan-to-value may impact the overall cost of financing, “the ultimate risk rating of the underlying guarantor determines the amount of [collateral] to be held in reserve for that loan, which has a large impact on the underlying cost of capital to the lender,” von Weise explains.

Read full article here

This article was originally published by AvBuyer on March 11, 2026.

Contact Information:   
 

Theresa C. Myers
theresa.c.myers@nafa.aero                                                      
410-571-1740              

Chris Carter
chris@jetxfinancial.com
(813) 344-5421

NAFA Welcomes New Member: JetX Financial Solutions

Edgewater, MD — March 3, 2026 - The National Aircraft Finance Association (NAFA) is proud to announce that JetX Financial Solutions has joined its distinguished network of business and general aviation finance professionals.

NAFA welcomes JetX Financial Solutions. "We are pleased to welcome JetX to our network,” said Bryan Byers, NAFA President. “We expect their proficiency in customized financing will significantly contribute to the knowledge base and resources accessible to all NAFA members."

JetX Financial Solutions is an alternative private aircraft lender specializing in customized financing for transactions that fall outside traditional banking parameters. We provide finance leases, asset-based loans, and advisory services for both pre-owned and new aircraft, helping buyers, sellers, and brokers close deals with confidence. With deep aviation expertise and a hands-on approach, we design financing structures around real-world aircraft operations—not generic lending models—reducing risk and removing friction at every step.

"We're excited to join the National Aircraft Finance Association," said Chris Carter, VP of JetX. "Our focus is on delivering flexible, tailored financing for deals that fall outside traditional bank credit and underwriting boxes. NAFA membership connects us with industry leaders and expands our network of trusted partners, allowing us to better serve clients and close more deals with confidence. We look forward to contributing our expertise and learning from the broader aviation finance community."

About NAFA:  
The National Aircraft Finance Association (NAFA) is a professional association comprised of over 175 companies that promote the general welfare of aircraft finance for more than 50 years. Through collaboration, expertise, and educational content, NAFA provides the business and GA aircraft finance community opportunities for growth and betterment. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. 

More information at https://www.nafa.aero.

NAFA member Mike Smith, President of Scope Aircraft Finance, shares his latest article in Plane Truth.

As we move further into 2026, I’ve spent some time during my travels reflecting on where we can provide the most value through our monthly Plane Truth finance posts. I’ve been financing aircraft since 2011, and this segment of the industry has always fascinated me. ‍

As lenders, we have a front-row seat to so many cool areas of the industry, and by talking to our borrowers, we’re able to learn a lot about how the nation’s economy actually runs. ‍

For the rest of 2026, my goal is to provide various updates on a regular cadence through our Plane Truth posts.‍

Quarterly, we’ll review industry interest rate conditions, informed by actions (or inactions) by the Federal Reserve, along with a review of the yield curve. ‍

We’ll also take a quarterly look at macro transaction activity, which shows us how strong the market appears to be. Then, we’ll take a quarterly review of what interesting anecdotes we’re seeing out there. ‍

This month, I wanted to briefly comment on what we’ve seen in our loan fundings so far this year. 

Read full article here

This article was originally published in Plane Truth, Issue #17, on February 19, 2026.

The aviation finance industry underwent significant transformation in 2025, including the sizable impact of export controls and economic sanctions, a robust recovery in passenger travel, and continued activity in airline restructurings and liquidations.

Holland & Knight's Aircraft Finance Team has published an article series that reviews recent aviation finance trends and provides a glimpse of what's to come for manufacturers, airlines, lenders and other key players.

Articles and their focus areas are:

• Aviation Finance: 2025 Sanctions Update and 2026 Outlook. By Senior Counsel Cynthia Liu, the article reviews the effects of sanctions and export control restrictions, China military end user restrictions and the lifting of sanctions on Syria.
• Aviation Outlook. From Partner William R. Coleman, this article examines market recovery and drivers of growth, operational and financial challenges, and sustainability and digital transformation.
• 2025 Aviation Bankruptcy Update. Written by Partners Barbra R. Parlin and Brian Smith, the article details recent noteworthy U.S. and international airline Chapter 11 proceedings and restructurings.

The publication also shares how our Aviation Finance attorneys can help stakeholders navigate the ongoing changes in the industry.

Read the full publication here

This publication was originally published by Holland & Knight in Insights - January/February 2026 on February 5, 2026.

NAFA member FLYING Finance discusses how to avoid aircraft financing pitfalls.

The aviation finance industry is shrouded in misconceptions, even among seasoned professionals and pilots. These myths can and do lead to poor strategic decisions and missed opportunities.

Let’s debunk the most common fallacies that continue to circulate in boardrooms and financing negotiations.

Myth 1: Aircraft Always Depreciate Predictably

Many buyers, particularly in business aviation, have a notion that aircraft depreciation follows a neat, linear pattern that can be plugged into spreadsheets with confidence. The reality is far more nuanced.

While certain aircraft types do follow relatively predictable curves, depreciation is heavily influenced by factors that differ from other classes of asset. Regulatory changes, fuel price volatility, and demand for private aviation mean that many models do not follow a standard depreciation curve in the slightest. 

Smart buyers and aviation financiers build flexibility into their models and maintain healthy skepticism about any depreciation schedule that looks too clean.

Read full article here

This article was originally published by FLYING Finance on January 10, 2026.

NAFA member, Mike Smith, President of Scope Aircraft Finance, looks back at a volatile 2025—tariffs, tax policy, and rate shifts—and explains what those lessons mean for aircraft financing as owners head into an uncertain but opportunity-filled 2026.

As we push toward the end of January, I want to wish you one last “happy new year!” from Columbus, Ohio. The Scope team is mostly recovered from what turned out to be a very strong 2025. Looking back at the year, it’s incredible to see how it ended after how it started.‍

If you go into the way-back machine, you’d remember that, at the start of 2025, there was tremendous optimism that the Trump administration was going to jump-start the economy with favorable tax policy, and in our industry, that meant a rapid return to the accelerated depreciation schedules of yesteryear. The industry saw a lot of 2024 closing volume pull forward into 2025 which resulted in a busy January for all.‍

As the calendar turned to spring, we all pulled out our high school US history books to remember what the word “tariff” meant and how it worked. Second quarter was a quarter of learning and navigating as tariff policy changed daily, with a new dynamic of including aircraft transactions.

Read full article here

This article was originally published by The Plane Truth on January 22, 2026.

As Business Aviation enters a new year, what are the major finance trends that borrowers need to consider for 2026? Gerrard Cowan asked industry experts for their thoughts on the financial environment, challenges and important questions borrowers should ask today.

The financing landscape today “is stable and competitive, but more disciplined than the post-pandemic years,” according to Mike Christie Head of Sales, America, at Global Jet Capital (GJC).

In particular, he notes that interest rates are elevated compared with the general trend for the past decade, pushing buyers to focus more on fixed-rate financing, predictable structures, and thoughtful amortization. This “comes against a backdrop of wider normalization within the business jet market,” he adds.

“OEMs have made progress resolving supply chain and labor constraints (although more work is needed) and aircraft availability has risen from ultra-tight levels (though it remains well below the historical averages).”

By the end of 2025, Global Jet Capital had seen a slight increase in cash purchases in the market and a slight decline in loans over a one-to-two-year period, Christie reveals, though he notes that this decline is likely to be driven by a combination of factors rather than one element in isolation.

“Factors like interest rate relative to reinvestment opportunity, outlook for the economy and individual company/personal cash position influence whether to seek financing,” he illustrates.

Lower Aircraft OEM Backlogs aid More Predictable Planning

Christopher Lee, President of the Aircraft Finance Division at 1st Source Bank, agrees that the low-rate financing surge of 2021-22 is no longer present. Still, demand for business aircraft remains steady, he notes, pointing to a moderation in OEM backlogs from their pandemic highs.

This has enabled more predictable acquisition planning, while there has also been strong demand for financed aircraft from international segments, notably in Latin America.

“This environment contrasts with prior years in a constructive way: financing activity today is driven by operational planning and long-term business needs rather than reactive or inventory-driven pressure,” he says.

Read full article here.

This article was originally published by AvBuyer on January 12, 2026.

Greetings from a busy year-end closing office at Scope Aircraft Finance!‍

Normally, after the clock strikes midnight on December 31, we can all breathe a collective sigh of relief. The busy pendulum swings to a slower pace in the first quarter. That trend changed last year with the anticipation of tax law changes under the incoming Trump administration.‍

The January slowdown we’re accustomed to didn’t occur, as several transactions were delayed into January fundings to take advantage of anticipated tax opportunities in 2025.‍

Halfway through December, we’re seeing the same volume trend for the second year in a row. Not only are we pacing for a record December, but we also have a strong January closing pipeline. While we always welcome the opportunity to serve our customers and help with whatever closing timeline they need, this “year-end plus January” closing volume does seem to be a new trend across the industry, and something we’re still adapting to.

Read full article here

This Scope Aircraft Finance article was originally published in The Plane Truth on December 17, 2025.