financing

NAFA member Tripp Thurston, Chief Operating Officer at FLYING Finance, shares his latest article.

The business jet is the tool. The second hangar is the reason they learned to fly in the first place.

The longer I am in aviation, the more I find two hangar pilots. These are the ones that have the business jet on limited charter with the management company, and a second hangar at the local airstrip. It is the second hangar that catches my attention, because it is the aircraft in that second hangar that sparks the eye twinkling smiles and the rascally grins. The second hangar is not always as brightly lit or even as big, but it is where you find the aircraft the owner actually loves to fly: a Carbon Cub FX-3 and an RV-14 he built during the pandemic.

This is not an unusual story anymore. It is a generation.

The Aircraft You Show Off and the One You Actually Fly

There is a class of pilot — successful, accomplished, the kind whose company uses the jet for legitimate business travel — who keeps a second aircraft that no flight department will touch, that no scheduler will log, that exists entirely outside the operational framework of the primary aviation asset. It is the aircraft they fly when the office is not calling.

Sometimes it is a Carbon Cub fully optioned north of $400,000. Sometimes it is an SR22 left over from before the company grew to the point where a Pilatus, EPIC or Citation made more sense. Sometimes it is a Van’s RV-14 that lives in a T-hangar at a grass strip forty minutes from home. Sometimes it is a restored Bonanza that belonged to a grandfather.

What unifies them is not the aircraft type. It is what the aircraft represents. The jet is the tool. The other one is the reason they learned to fly in the first place. Welcome back to FLYING.

Read full article here

This article was originally published by FLYING Finance in 2026.

NAFA member Commerce Bank shares their latest article on private jet financing.

For business owners and executives with a heavy travel schedule, switching from flying commercial to private can be transformational.

“Flying private is basically like a time machine, affording travelers the ability to visit multiple business locations and still return home to their family at the end of the day,” said Steve Olson, Commerce Bank manager, equipment finance, aircraft sales. “I hear that all the time.”

That sentiment has been driving activity in business aviation since the pandemic, according to Darren Lemkau, president and CEO of Commerce Bank ─ Colorado. He is seeing a high velocity in aircraft lending, with a mix of first-time customers, refinancing and buyers trading up. Even a tighter supply for new aircraft and parts for repairs hasn’t slowed things down.

“The thing about the aircraft business is it doesn’t start and stop on a dime,” Lemkau said. “Aircraft take a long time to produce.”

Couple the persistent demand with a convergence of market conditions, and it makes 2026 a unique moment for businesses looking into aircraft ownership options.

Navigating the interest rate landscape

The interest rate environment is playing a key factor in today’s aircraft financing landscape. Many buyers who financed aircraft in the past several years used short-term, variable-rate loans, according to both Olson and Lemkau, and with rates fluctuating, the refinancing question is on the mind of many owners.

“Five years ago, rates were significantly lower than they were two years ago,” Olson said. As a result, borrowers with favorable interest rates are holding onto their existing loans as long as they can, while those with higher rates are exploring their options.

“It’s hard to foresee how that’s going to play out in the future,” he added.

Read full article here

This article was originally published by Commerce Bank on July 2, 2026.

NAFA member Arcadia Jets shares their latest article about aircraft brokers and what they do. 

Ask someone outside the aviation industry what an aircraft broker does and the answer is usually simple: a broker helps buy and sell airplanes. While technically accurate, that explanation barely scratches the surface of the role a professional aircraft broker plays in a successful transaction.

Aircraft ownership represents a significant financial commitment, and unlike many other assets, every airplane carries a unique history. Two aircraft of the same make, model, and year can have dramatically different values and ownership experiences. Maintenance practices, operational history, avionics upgrades, inspection status, engine programs, and recordkeeping all influence not only what an aircraft is worth today, but also what it may cost to own tomorrow.

This is where an experienced aircraft broker creates value. Rather than focusing solely on the transaction itself, a broker helps buyers and sellers understand the broader picture. The objective is not simply to complete a sale. The objective is to help clients make informed decisions that support their long-term aviation goals.

At Arcadia Jets, we often tell clients that the airplane is only one piece of the transaction. Understanding the aircraft, the market, and the strategy behind the acquisition or sale is what ultimately determines success.

Read full article here

This article was originally published by Arcadia Jets on June 30, 2026.

 NAFA member Tripp Thurston, Chief Operating Officer at Flying Finance, shares his latest article on aircraft financing.

Financing an airplane is no small task. Here's our guide on how to simplify the process.

Purchasing your own aircraft is an exciting experience, but just like with any large purchase you may be feeling a bit overwhelmed. The journey to owning your dream aircraft involves a crucial step: understanding how aircraft financing works. That’s why we’ve created this guide: to explain the complexities of aircraft financing and dive deep into the loan process.

How Does Aircraft Financing Work?

Just like other forms of financing, aircraft financing follows the same principles but with different considerations due to the niche characteristics of aircraft. Let’s break down the basics:

1. Loan to Value (LTV): This ratio determines the percentage of the aircraft’s value that a lender is willing to finance. LTV varies based on factors like the type of aircraft, its age, usage (pt. 91, pt. 135) and your creditworthiness.
2. Interest Rates: Aircraft finance rates are influenced by factors such as market conditions, the borrower’s credit score, financed dollar amount and the chosen financing option. A lower interest rate can significantly impact the overall cost of ownership.

1. Liens: Lenders often place a lien on the aircraft as collateral for the loan. This legal interest ensures the lender’s security in case of default.

Expected Aircraft Financing: Loan to Value

The loan-to-value (LTV) ratio in aircraft financing is determined by a few different factors:

• Aircraft Type: Different types of aircraft may have varying LTV ratios.
• Age and Condition: Older aircraft may have lower LTV ratios due to depreciation.
• Borrower’s Creditworthiness: A higher credit score may result in a more favorable LTV ratio.
• Aircraft usage: Part 91 vs part 135 will influence the LTV due to hours a year flown. (higher use=lower LTV)

Factors Affecting Aircraft Financing Interest Rate

Several considerations affect the interest rate in aircraft financing:

• Credit Score: A higher credit score often leads to a lower interest rate.
• Market Conditions: Economic factors such as Federal funds rates, SOFR rate, and WSJ Prime Rate impact interest rates in the aviation finance sector.
• Loan Term: The length of the loan term can affect the interest rate offered.
• Amount Financed: Lower finance amount will lead to a higher interest rate.

Read full article here

This article was originally published by Flying Finance on June 2, 2026.

How will you use your airplane? It’s a question AOPA Finance asks early—because the answer shapes your financing options and terms.

To lenders, airplanes fall into two categories: “nice-to-have assets” or “working assets.” Personal or business travel aircraft typically fly fewer hours and are considered nice-to-have. In contrast, aircraft used for charter (Part 135) or leaseback fly more frequently and are treated as working assets. The difference in usage creates very different risk profiles.

Nice-to-have aircraft are easier for lenders to manage in a default scenario. They can be sold without disrupting a business, and their depreciation tends to be slower and more predictable. That makes them a more comfortable risk, often qualifying for favorable terms—like longer amortization and lower down payments.

Read full article here

This article was originally published by AOPA Finance on June 12, 2026.

NAFA member David G. Mayer, Partner in the Aviation Practice Team at Shackelford, McKinley & Nortin, LLP, shares his latest article in Business Jet Traveler.

Paying for your jet in cash? Maybe you should reconsider.

A subtle shift toward refinancing business aircraft appears to be underway. Although an estimated 70% of aircraft buyers pay cash, these figures do not reflect financing trends I have noticed in loan and lease activity since 2025 amid robust demand for business aircraft. Perhaps this preference for paying cash is softening as buyers conclude that it results in lost financial opportunities, a counterproductive allocation of capital, and a diminution in accumulated wealth.

Two Categories of Refinancing  

At a high level, aircraft refinancings fall into two broad categories: secured loans and sale-leasebacks. A refinancing here refers to a loan or lease (financing) completed after the aircraft purchase date. 

In a secured loan, a lender disburses funds to an owner/borrower in one or more advances, including new aircraft progress payments. The lender secures repayment by obtaining a security interest in the purchase agreement, the aircraft and related assets under a security agreement/ mortgage.

A true sale-leaseback occurs when an owner sells the aircraft to a buyer/lessor at 100 percent of the agreed-upon sale or market value and then leases it back to the selling owner. A lease of a business aircraft under the Uniform Commercial Code (UCC) generally means a transfer by a lessor to a lessee of the right to possess and use the aircraft for a term in return for consideration, such as hourly, fixed, or variable rents. Lessors also fund progress payments and convert them into a lease.

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This article was originally published by Business Jet Traveler in May 2026.

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.”

Read full article here

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.