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Light aircraft finance: funding a single or twin piston aircraft
How to finance a light aircraft in the UK, from a two-seat trainer to a four-seat tourer or twin: aircraft mortgages, hire purchase, deposits and what lenders check.
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- Amount
- From £10,000 to £20 millionLarger amounts through secured, property and asset-based finance
- Security
- Secured or unsecuredOptions compared for your case
- Suitable businesses
- Sole traders to limited companiesPartnerships and LLPs too
- Lender panel
- 300+ lendersWhole-of-market search
In short
What you need to know.
Light aircraft finance spreads the cost of a new or used light aircraft, such as a two-seat trainer, a four-seat tourer or a light twin, over an agreed term.
Aviation lenders fund them through a loan secured on the aircraft or hire purchase, usually with a deposit, once the aircraft is on the register and its records check out.
About light aircraft finance
Specialist knowledge. Better outcomes.
Light aircraft hold their value well when they are well maintained and well documented.
Light aircraft hold their value well when they are well maintained and well documented, which is why specialist lenders are comfortable funding them for private owners, syndicates, flying schools and businesses. This page covers how light aircraft finance works and what lenders want to see. For helicopters, gyroplanes and microlights, see their own pages in our aviation finance section.
- Access to 300+ lendersWhole-of-market search across our lender panel.
- Independent brokerSmart Funding Solutions is an independent broker, not a lender.
- Tailored to your caseYour case presented to lenders suited to it.
- Support from start to finishOur experts handle the process from start to finish.
Who light aircraft finance suits
- Private pilots buying their own aircraft or a share in one.
- Flying schools and clubs buying trainers.
- Businesses using an aircraft for travel, survey or aerial work.
- Owners releasing cash from an aircraft they own outright.
Found a light aircraft for sale?
Most light aircraft for sale in the UK are listed by dealers, brokers and private sellers on aviation marketplaces and club noticeboards. Agree your finance in principle before you commit, so you know your deposit, term and monthly payment when you make an offer. For a private sale the lender will check that the seller owns the aircraft and that any finance against it is cleared, and will usually pay the seller directly once its security is in place. A pre-purchase inspection by a qualified engineer protects you and the lender.
Specialist lenders on our panel
Arkle Finance and Close Brothers are both on our panel, and both run specialist aviation teams. Arkle publishes aviation finance for light aircraft and helicopters, including a dedicated autogyro finance service, and Close Brothers Aviation & Marine funds light piston aircraft, turboprops, helicopters and vintage aircraft, according to their websites. Smart Funding Solutions is an independent broker and is not part of either lender. We approach the lenders whose criteria fit your aircraft and set the offers side by side.
The register and the lender's charge
UK-registered aircraft can be mortgaged, with the charge recorded on the register of aircraft mortgages kept by the Civil Aviation Authority. Lenders check the registration and any existing charges before they lend, and on a private sale the seller's finance must be cleared before ownership passes. Aircraft on a foreign register, or still abroad, are harder to fund until they are imported and registered.
Business use and personal use
Finance for an aircraft bought by a company, partnership or sole trader for its business is commercial lending. Finance for an individual buying an aircraft for personal or leisure flying can be regulated consumer credit, which follows different rules and protections. Tell us at the outset who will own the aircraft and how it will be used, so the right lenders and the right agreement are used.
Costs to consider
Compare the total amount payable, fees, any balloon and the early settlement terms. Insurance, hangarage, the annual inspection, engine reserves and landing fees sit on top of the finance, and lenders take them into account when they check affordability.
Useful sources
Before you buy, check the aircraft on G-INFO, the CAA register of UK aircraft. For permit aircraft and homebuilts, the Light Aircraft Association is the body to speak to.
Underwriting
What lenders look at
01
The aircraft: type, age, hours, engine and propeller time, avionics and records.
02
Your deposit, typically 10% to 30% of the price for aircraft.
03
For a business: accounts, bank statements and how the aircraft is used.
04
For a private buyer: income, outgoings and credit history.
05
Insurance with the lender's interest noted, and where the aircraft is hangared.
Side by side
Compare your options
How the main business finance structures work. Lenders set their own terms, so treat this as a guide to the questions to ask.
| Option | How you repay | Security | Often used for |
|---|---|---|---|
| Unsecured business loan | Fixed instalments, usually monthly | No charge over assets; a personal guarantee is usually required | Growth, stock, tax bills and cash flow |
| Secured business loan | Fixed instalments, often over a longer term | A charge over property or other assets | Larger sums, property and refinancing |
| Revolving credit facility | Interest on what you draw; repay and redraw | Varies by lender and case | Recurring or uneven cash flow gaps |
| Merchant cash advance | A share of future card takings | No charge over assets | Card-taking businesses with uneven months |
| Asset finance | Regular payments over the life of the asset | The asset being financed | Equipment, vehicles and machinery |
| Invoice finance | Settled as customers pay their invoices | Your unpaid invoices | Businesses waiting on customer payment |
General information only. Every lender has its own criteria, and all finance is subject to status.
How light aircraft finance works
| Structure | How it works | Often suits |
|---|---|---|
| Aircraft mortgage (secured loan) | A loan secured on the aircraft, with the lender's charge registered against it | Private owners and companies |
| Hire purchase | Deposit, then fixed payments; ownership passes at the end | Businesses that want to own the aircraft |
| Balloon payment | Lower monthly payments with a larger final payment | Popular types with a strong resale market |
| Refinance | Borrowing against an aircraft you already own | Funding an engine overhaul, avionics or a newer aircraft |
The broker’s view
How we help
Tell us the aircraft, the price, your deposit and who will own it. We match it against the aviation lenders on our panel, approach the ones that fit and present the case once, with the aircraft details and your accounts or income. The lender carries out its own checks and approval is always its decision. It is free to enquire, and any broker fee is disclosed separately before you proceed. To see your options now, use our instant quotes tool.
FAQs
Questions clients ask
Can I get finance on a light aircraft?
Yes. Aviation lenders fund new and used light aircraft through secured loans and hire purchase, for businesses and, with some lenders, private buyers. Most want a deposit and the aircraft on the UK register.
Can I finance a share in an aircraft?
It is harder than financing a whole aircraft, because the lender cannot take sole security over it. Some buyers fund a share with a personal or secured loan instead, so ask us about the options for your situation.
Do lenders finance older light aircraft?
Many do, as long as the records are complete and the type has a good resale market. Lenders often set a maximum age at the end of the term, so older aircraft may get shorter terms or need a larger deposit.
Can I finance an aircraft from a private seller?
Often, yes. The lender will check the seller owns the aircraft, that any existing finance is cleared, and the records and condition, and will usually pay the seller directly once its security is in place.
Keep exploring
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