Aircraft Loans & Financing

Aircraft Loans

We have traditional finance loans with 15-20 year terms for Piston, Turboprop, and Jets. These loans require a 15% - 30% down payment depending on usage, age and airframe hours of the aircraft.

Aircraft Lease Financing

You are making money with this asset, so get it now with 100% financing. We offer up to 7 year leasing plans with fixed payments, and/or a balloon payment. With a balloon, payments are comparable to a term loan. This financing type is only available to businesses (not individuals), whose aircraft is considered essential business equipment.

Quick Tips On Traditional Airplane Financing

Affects Aircraft Valuation

Damage History: Classified as Minor, Moderate, and Major. 

  • Minor: Little to no effect on the valuation of your airplane

  • Moderate: Can affect your valuation up to 20%

  • Major: Will significantly discount your valuation. Traditional lending is complex or will not finance at all. Sky Allies has sources who will fund it.

Missing Logbooks.

  • Up to 15% reduction in value with incomplete logbooks. (Airframe to origination, engine to 0 SMOH, propeller is available)

New Avionics

  • Will often be discounted to 80% value of the avionics (no installation labor) immediately and 50% in the first 1-2 years.

Non-compliance of FAA Airworthiness Directives (ADs)
Low-time airplanes can increase the valuation
Mechanics liens on the aircraft

Affects Borrowing Ability

  • Debt to Income ratio (including the purchase of the new airplane) 30-35% maximum. Your debt-to-income ratio allows you to compare the total payments you make each month on your debt to how much money you bring in. Lenders use your debt-to-income ratio as a way to measure your ability to repay a debt. A low debt-to-income ratio can help increase your borrowing potential, so you’re more likely to get approved for loans assuming there isn’t any major issue with your credit score.

  • Acceptable credit score

  • Enough liquidity to cover airplane down payment, taxes on purchase, insurance, hangar rent, with enough cash reserves remaining for several months of living costs. 401K values do not count as liquidity unless you are close to retirement and can access it without penalty.

  • Comparable debt.

  • The ability to verify your personal income.

    • Three years of 1040 taxes

    • Three years of W-2 or 1099’s

    • Personal Financial Statement

  • Prior airplane ownership is favorable as you understand the true costs of airplane ownership.

Insurance

Lenders will require aircraft insurance for full hull and ground in motion and not-in-motion with $1,000 or less deductible, Minimum $1 million liability, and contain breach of warranty clause to protect lender if Pilot deviates from what the insurance plan covers. Insurance must include a lien-holder endorsement.

Title Insurance not required unless there is a cloudy title. 

Any of the above a problem? 
We will work with you. 

It’s our job to match you with the best deal available for your particular situation and be knowledgeable about it. We know banks and independent funding sources with more lenient policies, saving you time in applying and helping avoid being turned down and unnecessarily having your credit bureau repeatedly pulled. That’s what we do, match you with the best financing available to you.