experimental airplane financing

Aircraft financing that gets you in the air fast.

Funding general aviation since 1994..

Our mission is to offer the best aircraft loan rates with fast processing times on single- and twin-engine piston, turboprop, jet, and experimental aircraft loans.

We keep aviation financing simple.

When you finance your aircraft through us, you’ll be working with experts who have streamlined the aviation lending process to make it as efficient as possible.

100% paperless and effortless

From application to funding, our process is completely digital, quick, and secure.

Response within 24 hours

Easily apply online and we’ll respond within 24 hours, so you’re wheels up before you know it.

Decades of experience

NAFCO has been financing aircraft for 30 years and is led by seasoned professionals who know their stuff.

Over $1.1 billion financed to U.S. pilots since 1994.

We are the trusted name in aviation financing because we're pilots just like you. Whether you have your plane picked out or you're looking into your options, we'll help you get the financing to fit your situation.

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Financing a Club Aircraft

By kevin buckland, president, eaa finance solutions administered by nafco, recent articles.

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December 17, 2015 - Whether you’re looking to start a flying club or expand a flying club’s fleet of aircraft, the process of funding the purchase, building, or restoring an aircraft can be a challenging process. This article will explain the process and pitfalls, enabling you to secure financing with greater ease.

To begin with, it wasn’t until NAFCO formed its relationship with EAA that any financier was willing to fund an aircraft for a flying club without a personal guarantor. EAA convinced NAFCO that established flying clubs run by EAA members offered an acceptable level of risk for a loan without the customary personal guarantor.

Now, a bit about NAFCO. NAFCO has been offering aircraft financing for individuals, flight schools, and flying clubs for more than 20 years, including for-profit and nonprofit clubs. EAA selected NAFCO to be the administrative agent for the EAA Finance Solutions benefits program in 2014. Since then, we’ve secured dozens of loans for EAA members on everything from scratch-built aircraft to kits to standard aircraft. We’ve also secured loans for avionics upgrades to comply with ADS-B requirements and engine overhauls.

In the course of making a particular loan for a flying club, underwriters will consider:

1. The year, make, model, and condition of the aircraft being financed

2. The expected usage of the aircraft

3. The club’s ability to repay

Factors that might cause a lender to refuse a loan on a particular aircraft include:

1. Missing logbooks

2. A high-time airframe (e.g., 10,000-plus hours)

3. An unairworthy aircraft or one having a significant/major damage history

Because an aircraft owned by a flying club is expected to be flown more frequently than a privately owned aircraft, the term (repayment time) of a loan to a flying club will be shorter than a loan made to an individual owner, the down payment required will be 30 percent versus 15 percent for an individual, and the interest rate on the loan will be around .5 percent higher. Such rules are in place to protect the lender from becoming “upside down” on the loan to value as a result of a faster rate of depreciation on a higher usage level for the aircraft.

EAA Finance Solutions has secured through NAFCO two options for guaranteeing flying club financing:

• Option 1: for clubs less than 3 years old, one or more individuals will need to be the personal guarantor of the loan
• Option 2: for clubs more than 3 years old, no personal guarantor is required 

NAFCO does write loans for experimental amateur-built (E-AB) kits and aircraft, within the following limitations:

1. There must be at least 25 examples of that model E-AB actively flying and listed on the aircraft registry in the United States

2. The model must be listed in the Aircraft Blue Book and/or VREF

3. The model must still be offered for sale in the United States

Exceptions to items one and two can be made when a kit is a new introduction from an established kit manufacturer and a comparable aircraft kit from that supplier that meets all three requirements can be identified.

In establishing the rates and term of the loan it will offer a club, a lender will evaluate: the flying club’s length of operation, its overall stability (how long have members been involved), and its corporate structure. A startup can expect a longer loan amortization, a personal guarantor or a credit enhancement (e.g., collateral), and higher rates.

Established clubs will be asked to provide documentation for the business finances, whereas startups will be required to provide document for the personal finance of the guarantors.

For more information on the financing options available to flying clubs, please go online to EAA.org/finance, or contact EAA Finance Solutions administered by NAFCO at 1.800.999.3712 or [email protected] . Please be sure to mention your EAA number to qualify for $140 off application fees and preferred rates.

For information on all of EAA’s insurance products, please visit the EAA Insurance Solutions Center

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Best Way to Finance A Small Aircraft – Top 5 Aviation Lenders (2021)

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Best Way to Finance A Small Aircraft - Top 5 Aviation Lenders (2021)

Best way to finance a small aircraft

Buying a new aircraft can be an exciting endeavor, however, in order to purchase the aircraft of our dreams, we may need to explore financing options. We have created this guide to help you specifically with Smaller Single Engine or Multi-Engine aircraft financing. If you are a new pilot or an experienced pilot this guide will share the best options to get into aviation financing.

In this article we will go over:

• Understanding Budget Limitations
• Financing Terms and Rates for Small Single and Multi-Engine Aircraft
• Best Lenders in the Aviation Industry
• Documents needed before approaching a lender
• Other options to reduce costs of financing

Are There Budget Parameters for Your Purchase?

One of the most universal questions to ask is what are your budget parameters. This can be a huge determining factor when choosing the category and class of your aircraft. It’s important to understand the extensive financing opportunities or leasing arrangements available to us as pilots.

Here are a couple aircraft options we have available so you can understand what to expect:

Piper PA32RT-300

• Pembroke Pines
• Single Engine

2008 Gobosh G700S

• Harry Reid International Airport

2016 Cessna T206H

1/5 ownership of cessna 182p 1974 great condition.

• New Orleans

1960 Cessna 172A Skyhawk

• Rosehill Cemetery

1966 Piper Cherokee 140

Partnerships are also a factor in choosing a budget parameter. Many pilots decide to co-operate their aircraft with a friend or business partner. If you decide to go 50/50 on an aircraft ownership this may increase the category and class of the aircraft you select.

AOPA offers an amazing aircraft loan calculator that should give you an idea of where you stand.

Check it out here   https://finance.aopa.org/loan-calculator

Financing a Small Aircraft

Aircraft financing is not too different than financing any other type of vehicle. You have a principal amount, with a loan term, interest rate, and all of this depends on the initial down payment.

Generally speaking, Aircraft financers want 15-20% down and loan 5-6% rates! Keep this in mind when searching for the best option.

Length of Term

The standard length of a term for aviation is different than what you may be used to. Usually, you can expect to see term lengths for up to 15 to 20 years. Now this is not to say you cannot get a term for a shorter period however these lengths are standard for smaller aircraft.

However, keep in mind, the longer the term is the higher the interest rate. So you may benefit from either an early payoff or a shorter term. Keep this in mind when discussing with your aviation lender of choice.

Best Options for Aviation Financing – Finding a Lender

Finding a lender can be one of the most critical parts of your aircraft buying process. Making sure you select the right lender can make a world of a difference in making the right deal. One of the key items is making sure your lender is apt and current with general aviation information. It’s the worst to contact a lender just to find out they have no background or experience within the aviation industry.

General aviation industry knowledge is an important consideration when choosing a lender for private aircraft.

Questions you should ask yourself:

• Is my lender current with FAA regulations when it comes to aviation financing?
• Does my lender understand general FAA requirements?
• History of experience with aircraft financing?
• Endorsements from key aircraft ownership groups (NBAA, AOPA)?

Documents Needed (Source: banterraaircraft.com)

Before approaching an Aviation Financer ensure you have the following documents readily available for negotiations.

• Personal Financial Statement Document
• Two Years Personal 1040 Federal Tax Returns with all Schedules
• Aircraft Specification Sheet Listing Avionics & Optional Equipment
• Liquidity Verification (Copies of most recent bank/brokerage statements)
• Two Years Business Tax Returns with Interim P&L with Balance Sheet (if applicable)
• (For S-Corporations): Articles and Certificate of Incorporation
• (For Limited Liability Corporations): Certificate of Formation, Operating Agreement, Articles of Organization
• Clear/Legible Copy of Driver License

List of AeroAvion Suggested Lenders

Lucky for you we have compiled a list of some of the best Aviation lenders – These lenders meet the requirements we set forth above.

1. LightStream Aircraft Financing

Light stream aircraft financing offers really attractive rates and options. LightStream offers a unique lending solution that allows customers with strong credit to borrow funds for purchases that had previously required collateral, or that fall into categories where few or no loan options exist.

Light stream offers to finance for many different ranges of aircraft and generally cap at around $100,000

Even though these options are directly from light stream, this gives you a better baseline when looking through the entire industry.

 Check them out here

2. US Aircraft Finance

A Veteran-Owned Business. An Industry Leader in Aircraft Finance Since 1998. Finance your aircraft purchases, upgrades, and more. Low Rates. Free Quote. They also offer Insurance coverage: Liability Coverage, Hull Coverage, Medical Coverage.

Check them out here

3. PNC Aviation Finance

PNC Aviation Finance has a full menu of aircraft lending capabilities and solutions including loans, leases and dealer floor plans. PNC aircraft financing offers up to 20-year amortization schedules designed to maximize your cash flow.

4. Banterra Aircraft Financing

Banterra’s competitive aircraft financing program offers many aviation industry exclusives including reduced customized down payment options for qualified applicants. Banterra is also one of the leading aircraft financiers in the industry with years of experience.

5. National Aircraft Finance Company | NAFCO

NAFCO is an affiliate of Pilot Bank, a Tampa Bay Community Bank that has operated successfully since 1987.  When you finance your aircraft with NAFCO, you have access to personal and commercial business banking, treasury management, health savings accounts, and mortgage services. NAFCO services all types of aviation financing from Single Engine Piston, to Multi-Engine Turbo Props.

Aircraft insurance

Pretty much every aircraft financer we have introduced on this list also does some form of aircraft insurance offerings. There are many different types of aviation insurance that you should be aware of. Each of these options adds to the total cost of your aircraft. Check out our guide to aircraft insurance here.

Other Options

There are many other options if you are looking for an economical way to finance an aircraft.

Aircraft Partnerships

You don’t necessarily have to buy an aircraft for the full price when you have a financial partner who shares a stake! Aircraft partnerships are often a really great way to get into finding the aircraft of your dreams. Often times it may be too expensive to buy an aircraft right out, however, imagine if you could buy 1/3 or 1/4 th  the cost.

Aircraft partnerships are usually an arrangement between 2-5 individuals over the costs of one aircraft. These smaller arrangements are more limited than a flight club however they offer the most exclusive rights to an aircraft. Generally, these relations are bound by contract meaning you have a legally vested interest in all operating costs and finances of the aircraft. However, it comes with the benefits of open scheduling, reduced costs, and the opportunity to access higher-end aircraft.

Frequently Asked Questions

How many years can you finance an aircraft.

Aircraft financing terms usually extend around 15-20 years. Keep in mind, however, the longer the term usually means a higher interest rate. You may benefit from early payoffs or shorter-term lengths.

What Credit score do I need to buy an aircraft?

In order to purchase a small plane, you will more than likely need a credit score of above 750 to get a competitive rate. This is because an aircraft is a luxury purchase which makes lenders more discretionary when choosing clients.

Can you Finance an Experimental Aircraft?

Yes, you can get experimental Aircraft financing and there are many programs to do so. Additionally, lenders offer to finance in Kit form and completed so you can do it at any stage of your build. The requirement is that there are at least 25 of the same make and model registered with the FAA.

What is the best first airplane to buy?

Choosing the right airplane can be a very subjective process. There is no right answer to the perfect aircraft however we can direct you. Check out our article on Questions to Ask When Buying an Aircraft.

The Bottom Line

Aircraft financing is undoubtedly one of the most critical parts in purchasing an aircraft. Making sure you choose the right lender and the appropriate terms can help you in the long run. Ensuring that your financier has experience with general aviation, Understands FAA regulation, and has appropriate endorsements can ensure you are going down the right path when choosing a lender.

Make sure to do your due diligence when searching, compare your options, and get multiple rates to ensure you get the best option.

Overall, make sure you are choosing the right aircraft, Check out our Aircraft Buying Guide Here to ensure you understand the full process of purchasing.

Check our Offerings

Check out our blog post on 5 Easy and Cheap Ways to start flight school , in which we also discuss how contracting a personal flight instructor can prove to be significantly cheaper in your own aircraft.

Are you interested in purchasing an aircraft? Check out some of our listings below, as you can see the prices are on par in comparison to buying a new car.

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