financing

Ken Greene, Attorney at the Law Office of Kenneth Charles Green in South California, shares his latest article in Monitor Daily. 

California’s new licensing law gives commercial finance companies until 2028 to prepare, but the real risk is unenforceable contracts, not just missing licenses.

On Sept. 30, Gov. Gavin Newsom signed Assembly Bill 2116 into law, in essentially the form discussed in my two previous articles, California AB 2116: No CFL License, No Collection? and California AB 2116: Can a Bank Buy an Unenforceable Loan? California will now require even more companies that provide or broker commercial financing to obtain licenses from the Department of Financial Protection and Innovation.

The good news is that the industry has time to prepare. The bad news is that it may need every minute.

AB 2116 covers commercial financing offers of $500,000 or less made to a qualifying small business or small-business owner. “Small business” generally means a for-profit business with annual gross receipts of no more than $16 million, subject to future adjustments.

Covered transactions include commercial loans, factoring, accounts-receivable purchases, sales-based financing, asset-based lending, open-end credit and “lease financing.” The latter generally refers to leases that create security interests under the Commercial Code. A conventional true lease should not become regulated merely because someone calls it equipment financing. As always, however, labels are no substitute for substance.

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This article was originally published by Monitor Daily on September 30, 2026.

NAFA member Kyle O'Donnell, Aviation Sales Executive at Elevex Capital, shares his latest article about why older business aircraft can be good assets despite banks’ age restrictions on financing them.

For owners and for the professionals who sell to them, the operating rule is simple: if the decline was really about the calendar, the problem was never the aircraft. It was the wrong lender.

The average business jet in the U.S. fleet is roughly 18 years old — JETNET and Airbus Corporate Jets have both put the figure in that band. Sit with that number for a second, because it is the single most consequential fact in business aviation finance, and it's poised to become more consequential.

Almost all lenders prefer newer aircraft. Most bank aviation programs cap airframe age at 15 years at loan maturity. Plenty prefer 10 at funding. That leaves a huge gap in the market: Secured Research analysis of the U.S. registry puts more than 60% of active business jets — call it 9,000-plus tails — outside the standard bank credit box on age alone. Before anyone pulls credit, before anyone reads a logbook.

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This article was originally published by Elevex Capital on September 28, 2026. 

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

As was widely anticipated, the Federal Reserve Open Market Committee (FOMC) increased its target rate by 0.25% at the conclusion of its meeting on September 16. This was the first rate increase in over 3 years, and in reading the tea leaves after the meeting, we should expect another 0.25% increase by the FOMC before the end of the year.​

This is a material change in posture compared to where we started in 2026. At the start of the year, the market expected rate cuts from the FOMC. What happened? Ultimately, it goes back to the Federal Reserve’s “dual mandate” of maximum employment and price stability (defined as a 2% inflation rate). And as we all know, inflation continues to run a little hot.

​Read the full article here

This article was originally published in Issue #24 of The Plane Truth on September 24, 2026.

Industry experts discuss with Felipe Reisch how today’s aircraft financing solutions can support a healthier cash flow, greater financial flexibility, and a more strategic long-term aircraft ownership.

Purchasing a business aircraft is often viewed as a significant capital investment, but the way that investment is financed can have implications extending well beyond the acquisition itself. After all, for many buyers, aircraft financing is not just about reducing the upfront cost.

When structured appropriately, aircraft finance can become an important tool for preserving liquidity, supporting business growth, and maintaining greater control over cash flow throughout the ownership cycle.

Don’t Treat Aircraft Finance as a ‘One-Size-Fits-All’ 

There is no universal financing structure that works for every aircraft acquisition. The right solution depends on the buyer’s financial position, operational requirements, ownership objectives and long-term business strategy.

In fact, many aircraft buyers can afford to purchase their plane in cash, but that doesn’t automatically mean cash is the most efficient use of capital, notes Alex Kowtun, Co-Founder at Palm Beach Jets. “Financing can allow the buyer to preserve working capital for operating needs, acquisitions, inventory, hiring, growth initiatives, or reserves for the aircraft itself.”

Hannah Davis, Vice President of Sales, Mid-Atlantic/Southeast US at Global Jet, believes that financing changes the game by transforming a massive, lump-sum capital expenditure into a predictable, structured operating expense.

“By preserving that liquidity, companies maintain the financial flexibility to respond to market opportunities or navigate economic downturns, all while securing the critical business tool they need to grow.”

She argues that buying a business jet outright ties up a large amount of liquid capital in a highly specialized, depreciating asset. “For high-growth companies or corporate flight departments, that capital almost always generates a higher return when it is reinvested back into core business operations, R&D, or strategic acquisitions.”

Steve Olson, Director of Airplane Finance at Commerce Bank, agrees, noting that while some owners choose to use cash or existing credit facilities to acquire an aircraft, financing secured by the aircraft itself can preserve liquidity and maintain borrowing capacity for other strategic investments, acquisitions, or operational needs.

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This article was originally published by AvBuyer on September 7, 2026.

NAFA member Global Jet Capital shares their latest article about business aircraft finance trends.

Looking at where business aviation is right now can help aircraft owners and financial leaders make strategic decisions about the future. Private aviation entered the second half of 2026 on solid footing with business jet departures, manufacturer backlogs and valuations all up from this time a year ago. At the same time, pre-owned availability declined as fewer younger aircraft came to market.

For financial decision-makers, these conditions reinforce an important point: aircraft finance trends are increasingly about more than simply securing the lowest-cost capital. Financing is becoming a strategic tool for managing liquidity, flexibility, risk and the role an aircraft plays within a broader capital strategy.

Aircraft Refinancing Unlocks Flexibility

For owners who already have aircraft financing in place, today's market can also be a reason to revisit that structure. An existing aircraft loan doesn’t have to be viewed as permanent. A refinancing review can uncover opportunities to improve liquidity, restructure debt or better align the financing with where the business is today.

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This article was originally published by Global Jet Capital on September 14, 2026.

NAFA member Preston Holland, President and Founder of Prestige Aircraft Financing, shares his latest article about aircraft financing.

The business jet buyer is acutely aware of the interest rate environment.  Whether the core business is commercial real estate, construction, or goods and services, the cost of borrowing is top of mind for growing a company.  That awareness is especially sharp right now given the volatility of the past few quarters.  My goal here is to lay out the core fundamentals of borrowing for corporate aircraft so you have a framework for your decision making.

How Business Jet Rates are Priced

There are a few benchmarks lenders use to determine the pricing of debt on aircraft.  The most popular today is SOFR, which tends to be the most reactive to market movements.  For instance, I had a deal recently that reduced by 20 bps between proposal and closing in the buyer's favor in a matter of thirty days.  To achieve a fixed rate on a SOFR based loan, lenders wil typically use some sort of swap contract index, such as the 5-year SOFR Swap Rate or the ICE Swap Rate.

Another popular benchmark is the 5-year Treasury yield.  The reason for this is that most aircraft transactions are structured as commercial loans with a term of 5 years, with a balloon payment due after the 60th month.  This typically aligns well with the bank's cost of funds regardless of how they actually fund their loans.

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This article was originally published in OGARAJETS' The Jet Whisperer, Summer 2026, page 14-15.

NAFA member Kyle O'Donnell, Aviation Sales Executive with Elevex Capital, shares his latest article on aircraft financing.

“My client has financing handled” is a comfortable premise, not a fact — and the data says it's the most expensive assumption in the transaction.

Every aircraft sales professional has heard the sentence, usually within the first fifteen minutes of the engagement, always delivered with total confidence: “Financing's handled, my bank's got it.” And every professional who's been at this longer than one market cycle knows what that sentence looks like on day 45: an underwriting file stalled in a committee that meets biweekly, a third request for entity documents nobody mentioned needing on day one, a listing broker starting to ask politely, then less politely, whether this buyer can actually perform. Meanwhile the pre-buy slot you fought to get at the service center is burning, the contingency window in the LOI is closing, and the backup offer that was theoretical in week two is suddenly returning the listing broker's calls.

The data says this isn't anecdote. Secured Research analysis of business aviation transactions found financing to be the leading cause of missed closing dates, implicated in 44% of delayed transactions — more than pre-purchase inspection findings and title issues combined. And in the majority of those files, the buyer entered the deal genuinely believing financing was already arranged.

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This article was originally published by Elevex Capital on August 21, 2026.

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

One of my favorite movies of all time is Anchorman. In one of the scenes of that movie, the narrator says, “Bob Dylan once wrote, ‘The Times They Are A-Changin’.” Ron Burgundy had never heard that song, so when he fell, he fell hard.”‍

That scene comes to mind regularly these days when I think about where interest rates have gone this year, and where things may go in the future. In fact, there are so many unique dynamics at play at once right now. We’ll chew through them periodically through our “The Plane Truth” articles the rest of the year.‍

As you know, a new chair of the Federal Reserve took the helm in June. Kevin Warsh is now Fed chair, and in the role he’s prioritizing providing less forward guidance than in recent history. For our conversation, let’s look at the “dot plot”. What is the dot plot? Periodically, members of the Fed forecast where they think rates will be headed. All their projections are outlined on a single chart represented by dots …hence the name “dot plot”.

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This article was originally published in The Plane Truth on August 27, 2026.

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

On my way home from EAA Oshkosh last week, I was thinking about how quickly the year is moving. I usually look at that summer event as the kick-off to the second half of the year…as hard as that is to believe.‍

As we reach the latter stages of summer, I’m reminded of something I’ve discussed previously…this concept of certainty. Over my 15 years of working in aircraft lending, I’ve been reminded that business owners (and, as a result, aircraft buyers) ultimately like to make decisions when they feel like they have clarity of what’s going to happen, which creates an environment of certainty. ‍

Two recent examples prove this point. Back in 2020, the Covid pandemic caused a great pause in aircraft purchasing, for good reason. Once we had an idea of the virus’s actual impacts, purchasing continued. Last year, the back-and-forth on tariffs created tremendous uncertainty and led to another pause in purchasing. Once we had a clearer idea of the tariff impacts, purchasing resumed.

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This article was originally published on July 30, 2026 in Issue 22 of The Plane Truth.

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.

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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.

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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.

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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.

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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.

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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.