Welcome to this week’s edition of “Clearance to Fly.” When it comes to aircraft purchases, timing truly is everything. Whether you’re eyeing that Cessna 172 or drooling over a Beechcraft Bonanza, understanding how long the financing process takes can save you significant headaches. As someone who’s navigated countless aircraft financing deals, I’ve seen firsthand how proper planning, or lack thereof, can make or break your aircraft acquisition experience.
The Typical Timeline
I have transacted a finance sale in 1 week but, for most aircraft purchases, you should expect the entire financing process to take between 3-4 weeks from initial inquiry to funding. This timeline isn’t arbitrary, it reflects the real-world process of evaluating both you as a borrower and the aircraft as collateral. While this timeframe represents the standard scenario, every transaction has its unique characteristics that can extend or occasionally shorten this window.
The aircraft financing process is best described as a hybrid between buying a car and purchasing a home. The lender will examine many of the same criteria as a mortgage lender, including credit history and income verification, but typically completes the analysis much faster than a home loan.
Breaking Down the Process
Let’s map out what those 3-4 weeks actually look like:
Approval Process (Week 1-2)
- Collect and submit financial documents (tax returns, pay stubs, W2s, personal financial statements)
- Select your specific aircraft and provide specifications for valuation
- Respond promptly to any follow-up questions from the lender
The approval process is where many first-time aircraft buyers encounter unexpected delays. Having your financial documentation organized and ready to submit can shave days off this phase.
Pre-Closing (Week 3)
- Submit aircraft-specific items (purchase agreement, logbook records, photos)
- If you’re purchasing through an LLC or corporation, provide organizational documents
- Address any title concerns or lien releases that might appear
Funding and Closing (Week 4)
- Execute loan documents and send to lender/escrow (2-3 days before closing)
- Provide escrow with necessary documents, authorizations, and wiring instructions
- Complete the transaction and take ownership of your aircraft
Common Delays and How to Avoid Them
Even with the best planning, certain issues can extend your timeline. Here are the most frequent culprits that throw a wrench in the process:
Incomplete Documentation
Nothing delays financing faster than missing paperwork. When a lender requests tax returns or bank statements, providing them promptly keeps the process moving. Something I often find myself saying, “We can only work as fast and efficiently as we are supplied financial documents and responses to questions”
Title Issues
Unreleased liens, document errors, or breaks in the ownership chain can create significant delays. Some of these issues involve liens that are decades old, making the resolution process particularly challenging. A thorough title search early in the process can identify potential problems before they derail your closing.
Mid-Process Changes
Having to adjust your loan, asset, or ownership structure is perfectly okay but, understand that this can cause delay getting to the closing table. Changing the ownership structure (like deciding to place the aircraft in an LLC rather than personal ownership) or switching to a different aircraft can essentially reset the clock on your approval. The name on the FAA registration must match the loan documentation, so any change requires amending both applications.
For example, I recently worked with a client who was approved for financing a 2010 Cessna. Two weeks into the process, they found a better deal on a 1997 Piper. Despite having pre-approval for the loan amount, we did have to restart the collateral evaluation process since age can significantly impact financing terms. There is nothing wrong with doing this, just understand the impacts it can have on timelines.
Aircraft Inspection Results
If the pre-purchase inspection reveals unexpected issues or damage history, the lender may request modifications to the loan structure. Being transparent about known issues from the beginning allows your finance partner to address them early rather than discovering surprises that delay closing.
The Importance of Financial Document Timing
I cannot overstate how critical it is to provide your financial documents to the lending institution promptly. This single factor can be the difference between a smooth, on-time closing and a frustrating, extended process.
The documents typically required include:
- Personal and business tax returns for the past two years
- Current bank and investment statements
- Valid photo identification
- Personal financial statement detailing assets and liabilities
Having these documents prepared before you even begin shopping for an aircraft puts you in an advantageous position. You’ll be ready to move quickly when you find the right plane, potentially giving you an edge in today’s competitive market.
Why Choose a Specialist for Aircraft Financing
Aircraft financing differs significantly from other types of lending. Using a lender who specializes in aviation finance, like FLYING Finance, offers several advantages that can streamline your timeline.
Aviation-specific lenders understand the nuances of aircraft valuation, title processes, and FAA registration requirements. They have established relationships with aircraft escrow companies and aviation legal groups, making the transfer of assets between parties smoother.
Most importantly, specialist lenders can anticipate potential issues before they become problems. They know which questions to ask about the collateral and can direct you to other essential resources like title and escrow services, legal counsel, insurance, and aviation tax advisers.
Getting Ahead of the Game
The best way to accelerate your financing timeline is to get pre-approved. This process confirms your creditworthiness before you’ve selected a specific aircraft, giving you confidence in your buying power as you shop the market.
Pre-approval doesn’t guarantee financing for any aircraft, but it eliminates a significant portion of the uncertainty around the transaction. You’ll know your budget constraints and can focus on finding an aircraft that meets both your needs and the lender’s collateral requirements.
Remember that market conditions can affect timelines too. During periods of high demand or at year-end when buyers are rushing to complete purchases for tax purposes, processing times often increase across the board.
Final Approach
Understanding the aircraft financing timeline helps set realistic expectations for your purchase. By preparing your documentation, working with aviation finance specialists, and maintaining clear communication throughout the process, you can navigate the financing journey with minimal turbulence.
At FLYING Finance, we specialize in guiding aircraft buyers through this process efficiently. Our expertise in piston aircraft financing means we understand the unique challenges and opportunities in this market segment.
Whether you’re a first-time buyer or adding to your fleet, proper planning and partnering with the right financing team makes all the difference in achieving a smooth landing to aircraft ownership.
Keller Laseter, Chief Commercial Officer, FLYING Finance
Bringing over 10 years of aviation experience and multiple years in finance, Keller Laseter combines both of those skills to be FLYING Finance’s CCO. His leading knowledge in all categories and classes of fixed wing aircraft helps guide you through the finance process with ease and will leave you knowing you’re in great hands. Keller holds type ratings in the Beechjet 400A/XP/NXT, Embraer E-175 and has many hours in King Airs, along with other high-performance aircraft. Throughout his career, he’s had the opportunity to enjoy the world of aviation and many different operations. As an ATP, CFI, and CFII, aviation is in his blood.
