Quick Answer
Aircraft finance involves securing funding for the purchase or upgrade of aviation assets, including commercial aircraft, private jets, helicopters, and drones, for business use. In Australia, aviation finance rates typically range from 7-14% p.a. (indicative only) in 2026, with loan amounts often starting from $50,000 and terms of 1-7 years. Businesses can access finance through major banks (CBA, NAB, Westpac, Macquarie), specialist equipment financiers like Selfco and Liberty, and non-bank lenders via modern comparison platforms. Common structures include chattel mortgages, hire purchase, and finance leases. Settlements are possible within days for straightforward applications, though specific requirements vary by lender, asset type, and borrower profile.
| Business/Borrower Profile | Indicative Rate | Typical Term | Common Aircraft/Equipment |
|---|---|---|---|
| Established (2+ years, strong) | 7-10% p.a. | 3-7 years | Commercial jets, helicopters |
| Standard (1-2 years) | 10-13% p.a. | 2-5 years | Light aircraft, turboprops |
| Specialist/Newer Operations | 13-16%+ p.a. | 1-3 years | Drones, unique aviation assets |
Rates are indicative examples only. Actual rates depend on individual circumstances and lender assessment. Aviation finance is highly specialised.
đź“„ Navigation Guide
- → Introduction
- → What is Aircraft & Aviation Finance?
- → Types of Aircraft You Can Finance
- → Common Aircraft Finance Structures
- → Who Offers Aircraft Finance in Australia?
- → Eligibility Criteria for Aircraft Finance
- → The Loan Phone Advantage for Aviation Finance
- → Frequently Asked Questions
By the Loan Phone team · Reviewed by Anthony Moncada, M.App.Fin, Cert IV Finance & Mortgage Broking, Director
Introduction
For many Australian businesses, aircraft are not just a luxury but a crucial operational asset. From regional charter services and agricultural spraying to freight logistics and corporate transport, the right aircraft can be the backbone of your operations. However, the significant capital investment required for purchasing or upgrading aviation assets can be a major hurdle. This is where aircraft finance steps in, offering structured solutions to help businesses acquire the planes, helicopters, and even advanced drones they need without tying up vital working capital.
Navigating the complexities of aviation finance in Australia requires a clear understanding of the options available, the lenders in the market, and the typical eligibility criteria. This guide will cut through the jargon, providing practical insights to help you make informed decisions in 2026.
What is Aircraft & Aviation Finance?
Aircraft and aviation finance refers to specialised lending products designed to fund the acquisition of new or used aircraft for commercial or business purposes. Unlike standard equipment loans, aviation finance often involves higher loan values, longer terms, and more stringent asset-specific considerations due to the nature and value of the collateral. It’s a critical tool for businesses looking to expand their fleet, replace ageing assets, or enter the aviation sector.
Types of Aircraft You Can Finance
A broad range of aviation assets can be financed under these arrangements, provided they are for genuine business use. This includes:
- Commercial Aircraft: Regional jets, turboprops, and larger passenger planes used by airlines or charter companies.
- Private & Corporate Jets: For executive travel or high-value business operations.
- Helicopters: Used in industries such as emergency services, tourism, agriculture, mining, and construction.
- Light Aircraft & Propeller Planes: Popular for flight schools, aerial photography, agricultural use, and small charter operations.
- Advanced Drones: Larger, commercial-grade drones used for surveying, delivery, security, or data collection.
- Specialised Aviation Equipment: Including engines, avionics, or ground support equipment.
Common Aircraft Finance Structures
In Australia, several finance structures are commonly used for aviation assets, each offering different ownership, tax, and cash flow implications.
Chattel Mortgage
A chattel mortgage is a popular choice where the business takes immediate ownership of the aircraft upon purchase, while the lender secures the loan against the asset. This structure allows the business to claim the full GST input tax credit upfront and potentially depreciate the asset. Learn more about Chattel Mortgages.
Commercial Hire Purchase (CHP)
Under a Commercial Hire Purchase, the lender purchases the aircraft on behalf of the business, which then hires it over a set term. Ownership transfers to the business once all payments and any residual value are settled. This can offer GST benefits spread over the loan term. Explore Commercial Hire Purchase options.
Finance Lease
With a finance lease, the lender retains ownership of the aircraft, and the business leases it for a fixed period. At the end of the term, the business typically has options to purchase the asset, re-lease it, or return it. Lease payments are usually tax-deductible as an operating expense (subject to individual circumstances).
Who Offers Aircraft Finance in Australia?
The Australian market for aviation finance is served by a mix of traditional banks and specialist lenders.
- Major Banks: Institutions like Commonwealth Bank (CBA), National Australia Bank (NAB), Westpac, ANZ, and Macquarie Bank often offer aircraft finance to established businesses with strong financial profiles. They typically provide competitive rates for low-risk applicants.
- Specialist Equipment Financiers: Non-bank lenders such as Pepper Money, Liberty Financial, and Selfco specialise in asset finance, including aviation. They often have more flexible criteria and can assist businesses with unique circumstances or those that don’t fit traditional bank lending models. For comprehensive equipment finance options, consider a broker.
- Boutique Aviation Lenders: Some smaller, highly specialised financiers focus exclusively on aircraft, offering tailored solutions often with a deeper understanding of the aviation industry’s nuances.
Modern comparison platforms like Loan Phone can connect businesses to a wide panel of these lenders, ensuring access to a broad range of options.
Eligibility Criteria for Aircraft Finance
Due to the high value and specialised nature of aviation assets, eligibility criteria for aircraft finance can be more stringent than for other equipment. While specific requirements vary by lender, general guidelines for businesses in 2026 typically include:
- Business Trading History: Most lenders prefer a minimum of 2 years of trading history, though specialist non-bank lenders may consider newer businesses with strong business plans and demonstrable experience.
- Financial Health: Lenders will assess your business’s revenue, profitability, cash flow, and existing debt. Strong financials are key to securing competitive rates.
- Credit History: A good business credit score is generally required. If you’re unsure about your credit score, get in touch – we can help you find out how to improve your credit score.
- Asset Type & Age: The type, age, and condition of the aircraft are critical. Older or highly specialised aircraft may require higher deposits or shorter terms.
- Operating Experience: For aviation assets, lenders may also consider the experience and qualifications of the pilots or operators.
- Deposit: While 100% finance is possible for strong applicants, a deposit (typically 10-20%) can improve your chances of approval and secure better rates.
Eligibility criteria are guidelines only. If you’re unsure, speaking with a specialist broker can help clarify your options.
The Loan Phone Advantage for Aviation Finance
Securing aircraft finance can be a complex and time-consuming process when approaching individual lenders directly. Loan Phone simplifies this by combining cutting-edge online comparison technology with expert broker support. Our platform allows you to:
- Access 100+ Lenders: Compare options from major banks, specialist equipment financiers, and non-bank lenders simultaneously.
- Streamlined Process: Our efficient system provides personalised quotes quickly, often within 24-48 hours for initial credit decisions.
- Specialist Expertise: For complex scenarios or unique aircraft, our experienced brokers provide human guidance to help navigate the intricacies of aviation finance, finding “left-of-centre” solutions that traditional banks might decline.
Frequently Asked Questions
What types of aircraft can I finance for business use? +
You can finance a wide range of aviation assets for genuine business use, including commercial jets, private jets, helicopters, light aircraft, propeller planes, and advanced commercial drones. The specific type and age of the asset will influence lender options and terms.
What is the typical loan term for aircraft finance in Australia? +
Loan terms for aircraft finance in Australia typically range from 1 to 7 years, though this can vary based on the aircraft's age, type, your business's financial strength, and the chosen lender. Longer terms can reduce monthly repayments, but may result in higher overall interest paid.
Can I get 100% finance for an aircraft? +
Yes, 100% finance for aircraft is possible for established businesses with strong financial profiles and a good credit history. However, providing a deposit can often improve your chances of approval and may lead to more favourable interest rates.
Do I need a deposit for aviation finance? +
While 100% finance options exist, especially for strong applicants, a deposit is often recommended. A deposit, typically 10-20% of the aircraft's value, can strengthen your application, demonstrate commitment, and potentially secure a lower interest rate.
How quickly can I get approved for aircraft finance? +
Initial credit decisions for straightforward **aircraft finance** applications can sometimes be provided within 24-48 hours. However, the complete settlement timeframe depends on the complexity of the deal, documentation execution speed, and vendor coordination.
Speak with Specialists
Need expert guidance on your aircraft finance application? Email: loans@loanphone.com.au Website: www.loanphone.com.au
Related Resources
Explore these related guides for business owners and ABN holders:
Disclaimer: This article provides general information only and should not be relied upon as financial or tax advice. Rates, terms, and eligibility vary by lender and individual circumstances. Tax benefits are subject to your specific business structure and circumstances. Information current as of May 2026 and subject to change without notice. Always seek independent professional advice from a qualified accountant and financial adviser before making financing decisions.
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Last updated: 2026-05-09