Which companies offer the best aircraft financing?
The best aircraft financing company depends on the aircraft, transaction size, borrower strength, intended use, and desired ownership structure. Look for a provider with experience in equipment finance, access to multiple capital sources, and the ability to offer loans, capital leases, operating leases, FMV leases, or sale-leasebacks. Commercial Funding Partners reviews qualified opportunities and structures financing around the business case rather than relying on a one-size-fits-all product.
What is the typical interest rate for airplane financing?
Aircraft financing rates vary based on the borrower’s credit profile, aircraft age and condition, loan-to-value ratio, transaction size, term, collateral, and market conditions at closing. Lease pricing is also influenced by residual assumptions and end-of-term options. Rather than relying on a published average, borrowers should compare the complete proposal, including payment schedule, fees, covenants, term length, purchase options, and any prepayment provisions.
Can I finance a used aircraft?
Yes. Commercial Funding Partners finances qualified used equipment, and aviation is among the industries it serves. Eligibility is evaluated individually and may consider the aircraft’s type, age, condition, valuation, maintenance history, intended use, ownership structure, and the borrower’s financial profile. A confidential review helps determine which loan or lease structure best supports the acquisition and the company’s broader capital needs.
What types of aircraft lease structures are available?
Available structures may include capital leases, operating leases, tax leases, and fair market value (FMV) leases. A capital lease can suit organizations seeking a long-term financing arrangement, while an operating or FMV lease may prioritize flexibility at the end of the term. The appropriate option depends on accounting treatment, tax considerations, expected utilization, residual-value objectives, and whether ownership is a priority.
Can an owned aircraft be used in a sale-leaseback?
A sale-leaseback may allow a business to convert equity in an owned aircraft into working capital while continuing to use the asset under a lease agreement. Proceeds can support expansion, acquisitions, partner buyouts, or balance-sheet recapitalization. The transaction is subject to appraisal, credit review, documentation, and mutually agreed lease terms. CFP evaluates sale-leasebacks as a standalone strategy or within a larger financing plan.
How much can Commercial Funding Partners finance?
Commercial Funding Partners structures equipment financing transactions from $250,000 to $300 million per project. The appropriate amount for an aircraft transaction depends on the qualified collateral, borrower credit, structure, and total project requirements. For larger or more complex investments, CFP can arrange institutional-quality structures, including customized facilities and financing that may include eligible acquisition-related costs alongside the primary asset.
How long does aircraft financing approval take?
Timing depends on how quickly the required financial, aircraft, valuation, and transaction documents are available, as well as the complexity of the requested structure. CFP states that a structuring specialist responds within one business day for equipment financing inquiries. A preliminary discussion can identify likely requirements early, helping borrowers prepare for credit review, documentation, closing, and funding with fewer avoidable delays.
What information is needed to request aircraft financing?
A useful initial request typically includes the aircraft description, purchase price or estimated value, seller information, intended use, requested amount, preferred term, and target closing date. Businesses should also be ready to provide organizational and financial information for credit review. If the transaction includes a leaseback, acquisition, or related costs, explain the broader objective so the financing structure can be evaluated in context.