Are you thinking about financing your aircraft and want the lowest rate possible? Your final loan terms depend on more than just the aircraft; they also come down to your planning and financial profile.
In this blog, you’ll learn what affects aircraft loan rates and what you can do to secure the most competitive offer. From prep work to lender expectations, we’ll simplify the process with these aircraft loan approval tips. Read on!
What You Should Know About Aircraft Loan Rates
Aircraft loan rates aren’t one-size-fits-all. Lenders base them on a mix of factors like your financial history, the aircraft type, loan term, and market conditions. Just like home or auto loans, rates change over time and vary between lenders.
Rates can also shift based on industry trends. When inflation rises or the economy tightens, loan rates can go up. That’s why it helps to understand how they’re calculated so you know what you can control and what you can’t.
Tips That Help You Qualify for the Best Rates
Getting the best possible rate starts with being prepared. Here’s what to focus on:
1. Know Your Financial Picture
Lenders look at your income, debts, and liquidity. They want to see that you can manage loan payments without strain. Knowing where you stand helps you plan ahead.
2. Understand Your Aviation Credit Score
Your aviation credit score is based on your overall credit history and payment habits. It’s important for you to know this helps lenders confirm eligibility, but it’s not used to fine-tune rates. It’s more of a yes or no factor in the approval process.
3. Keep Debt in Check
A lower debt-to-income ratio tells lenders you’re not overextended. If possible, pay down balances before starting your loan process.
4. Have Cash Reserves
Showing that you have savings adds confidence. It proves you can handle the loan even if something unexpected comes up.
5. Choose the Right Aircraft
Lenders also look at the aircraft. Newer, more common models may be easier to finance with better terms. The aircraft’s condition, age, and usage all matter.
6. Offer a Strong Down Payment
Putting more down lowers your loan amount and reduces risk for the lender. That can help unlock better aircraft loan rates right from the start.
7. Work With an Experienced Lender
Not all lenders specialize in aviation. Working with one who does ensures you’re getting accurate advice and the best available aircraft loan rates.
Better Rates Begin With AirFleet Capital
The best approval tips for your aircraft loan all point back to one idea: be prepared and work with a lender who understands aviation. That’s what we focus on at AirFleet Capital.
We offer flexible loan programs, fair aircraft loan rates, and a process built around transparency and support. With decades of experience, our team understands what it takes to finance aircraft the right way—from your first question to final approval. Check our financing options and fill out your application today.