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Aviation finance for aircraft, helicopters and drones
How businesses fund light aircraft, helicopters, simulators and drones with hire purchase, aircraft mortgages, leasing or refinancing, and what lenders check.
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- Amount
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In short
Most business aircraft are funded with the aircraft itself as security, through hire purchase, an aircraft (chattel) mortgage, leasing, or refinancing an aircraft already owned.
A lender's decision turns on the aircraft's type, age, hours, maintenance history and resale market, the size of the deposit, and how the aircraft will earn its keep, whether through training hours, charter bookings or survey contracts.
- New and used light aircraft, twins
- Microlights and vintage aircraft
- Flight simulators and training equipment
- Commercial drones and associated
- Engine overhauls, avionics upgrades
“The whole process was very smooth and was completed within a few days.”
About aviation finance
Aviation finance is funding to buy, refinance or maintain aircraft and aviation equipment.
For UK businesses it covers light aircraft, helicopters, microlights, vintage aircraft, flight simulators and commercial drones, used by flight schools, charter and air-taxi operators, aerial survey and filming firms, maintenance organisations and companies that use aircraft in their business. The main options are hire purchase, aircraft mortgages (chattel mortgages), leasing and refinancing of aircraft you already own.
Smart Funding Solutions is a broker, not a lender. We search our panel of 300+ lenders, including specialist asset funders, for finance that fits the aircraft, how it will be used and your business's circumstances. Aviation is one of the specialist sectors in our SME loans hub.
Funding needs
What can be financed
- New and used light aircraft, twins and helicopters
- Microlights and vintage aircraft
- Flight simulators and training equipment
- Commercial drones and associated equipment
- Engine overhauls, avionics upgrades and major maintenance
- Hangar facilities, through commercial property finance
Quick enquiry
Prefer a quick call back?
Not ready for the full application? Leave a few details and a broker will call you to talk it through. It is free, with no obligation.
- One short conversation, no paperwork yet
- Whole-of-market search across 300+ lenders
- Or call us on 01244 267694
A transaction we arranged
£20,000
£20,000 for an aviation safety services business, matched to the right lender.
Finance for specialist equipment, training delivery costs and working capital around customer contracts.
Read the transaction- Sector
- Aviation safety services business
- Structure
- Business loan
- Outcome
- Completed
Types of aviation finance
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Hire purchase
Learn moreYou pay a deposit and fixed monthly instalments, and ownership passes to you at the end of the agreement. A balloon (final) payment can reduce monthly costs. It works in the same way as business equipment financing for other assets.
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Aircraft (chattel) mortgage
You own the aircraft from the start and the lender takes a mortgage over it until the loan is repaid. If repayments are not made, the lender can repossess and sell the aircraft. Chattel mortgages are generally for business use; expect an administration fee and possibly early repayment charges.
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Leasing
You pay to use the aircraft for an agreed period without owning it. Leasing suits operators who want to renew equipment regularly. How a lease appears in your accounts depends on current accounting rules, so ask your accountant.
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Refinancing
Learn moreRelease capital tied up in an aircraft you already own, to fund an overhaul, an upgrade or other business needs. See asset refinancing.
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Interest-only facilities
Some lenders offer interest-only terms for particular situations, such as aircraft bought for overhaul and resale.
The operating cycle
Where finance fits into your aviation
Cash leaves the business at every stage before it comes back. Each stage below is a point where the right facility can carry the gap.
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01 Win work
Orders, contracts or customers secured.
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02 Buy in
Stock, materials and equipment paid for up front.
Asset finance → -
03 Pay people
Wages and suppliers paid on time.
Working capital → - 04
Deliver
The work is done or the goods are sold.
- 05
Get paid
Customers pay, sometimes weeks later.
Invoice finance → - 06
Tax
VAT and Corporation Tax fall due.
HMRC loans → - 07
Invest
Growth, a new site or new equipment.
Business loans →
Funding needs
Funding options for aviation businesses
Choose the need, and we’ll show you how lenders usually structure it.
How aircraft finance works
- Identify the aircraftFinance is available from dealers and, with many lenders, private sellers.
- Provide detailsLenders will want the type, age, hours, maintenance history, registration and price, plus your business accounts and bank statements.
- Survey and valuationFor used aircraft, an independent survey by a suitably qualified engineer is strongly advisable, and the lender may require one.
- Check existing chargesMake sure there is no outstanding finance or mortgage over the aircraft before you buy.
- InsuranceComprehensive insurance is normally required, with the lender's interest noted on the policy.
- Sign and completeOnce approved and the survey, insurance and title conditions are satisfied, you sign the agreement, the lender registers its security and pays the seller.
Aircraft mortgages can be registered with the UK Civil Aviation Authority, and charges given by companies are also registered at Companies House.
How aviation businesses earn and spend money
Lenders want to understand how the aircraft pays for itself, and that differs by operator:
- Flight schools and training organisations: income depends on student numbers and flying hours, which can dip with weather and the seasons.
- Charter and air-taxi operators: revenue follows utilisation, so lenders look at booking history and how many hours the aircraft flies.
- Aerial survey, filming and drone firms: often contract-based, with clients paying on invoice terms after the job.
- Maintenance organisations: spend heavily on tooling, parts stock and hangar space ahead of customer work.
Large, irregular costs such as engine overhauls, avionics upgrades and annual maintenance also need planning, alongside insurance and hangarage.
Business use and personal use
This page covers finance for aircraft used in a business. Finance for an individual buying an aircraft for personal or leisure flying can be regulated consumer credit, which follows different rules and protections. If your purchase is partly or wholly for personal use, tell us at the outset so it can be handled correctly.
How to apply
Have these ready:
- Aircraft details: type, age, hours, registration, maintenance records and price
- A survey report for used aircraft, if you already have one
- Latest business accounts and recent bank statements
- How the aircraft will be used and the income it will generate
- Pilot or operator qualifications and approvals where relevant
We will discuss the realistic options, approach suitable specialist lenders and review their terms with you. The lender then carries out its own underwriting, valuation and checks, and approval is always its decision. Any broker fee is disclosed separately before you proceed.
Underwriting
What lenders look at
01
The aircraft's type, age, hours, condition and resale market
02
Your deposit or equity
03
Business accounts, bank statements and how the aircraft will generate income
04
Credit history of the business and its directors
05
Pilot or operator experience and regulatory approvals where relevant
A weaker credit history narrows options but does not always rule you out. See asset finance for how lenders assess equipment generally.
Pros and cons
Advantages
- Spreads a large purchase over time, preserving working capital
- The aircraft itself usually secures the finance
- Structures can be matched to how the aircraft earns income
- Interest and capital allowances may be tax-efficient for business use (check with your accountant)
Disadvantages
- The aircraft can be repossessed if repayments are missed
- Older or unusual aircraft may be harder to fund or need a larger deposit
- Insurance, maintenance and hangarage are ongoing costs on top of repayments
- Early repayment charges may apply
FAQs
Questions clients ask
Can I finance an engine overhaul?
Yes. Lenders can fund major maintenance such as engine overhauls and avionics upgrades, either as a loan or by refinancing an aircraft you already own. If the aircraft is already under a finance agreement, speak to your existing lender first, as some agreements restrict further borrowing against the asset.
How much deposit do I need for aviation finance?
There is no single figure, because lenders set their own criteria for each aircraft and borrower. The deposit usually depends on the aircraft's age, type and resale market, how it will be used, its maintenance history and your business's trading record. Older, rarer or highly specialised aircraft tend to need a larger contribution, while a well-documented aircraft with a strong second-hand market and an established operator may need less.
What aircraft records do lenders ask to see?
Lenders usually ask for the aircraft's logbooks, maintenance and inspection records, airworthiness documents, registration details and an insurance quote, alongside your business accounts and bank statements. Gaps in the records make an aircraft harder to value and to resell, which can reduce what a lender will advance. The Civil Aviation Authority sets the registration and airworthiness requirements that lenders expect an aircraft to meet.
Can a new flight school or charter business get aviation finance?
It is possible, but lenders look harder at a business without accounts. They focus on the owners' aviation experience, the business plan, any contracts or student bookings, the deposit available and the aircraft's resale value. A personal guarantee is likely, and some lenders may limit the amount or term until a trading record builds. Our page on start-up business loans covers funding for new businesses more generally.
Can commercial drones be funded with aviation finance?
Yes, commercial drones and their cameras and sensors can usually be funded through hire purchase or leasing, much like other business equipment. Because the technology changes quickly and resale values fall faster than for crewed aircraft, lenders tend to prefer shorter terms. Survey and filming firms often fund drones as part of a wider equipment package. See our guide to asset finance for how these agreements work.
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What our clients say
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Why businesses choose Smart Funding Solutions
- Access to 300+ lenders
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- No obligation discussion
- Free to enquire