Budget season is here and the year-end rush is on. Kimsey Bell and Jackson Moore explain what to sort out with your accountant, what lenders need to see and why a pre-approval comes first.
With extended 2025 tax returns filed, many business owners are in budget season, meeting with their CPAs and planning capital expenditures for 2027. Some are racing to close an aircraft purchase before year end. Here's what our specialists recommend sorting out first.
Q.If you were sitting in a client's planning session, what would you want sorted out before a purchase?
KimseyFor business owners, it's important to have an accurate snapshot of how you're paid and how your business is structured. Whether you file as a sole proprietor with a Schedule C, operate an S corporation with distributions and W-2 income, or use another structure, understanding that up front lets us give you an accurate list of the documents needed for pre-approval and approval.
Getting the required documents to us promptly can speed up the process considerably. It helps us understand your financial position and pursue the most competitive rates and terms available to you.
Another consideration: many applicants file jointly with a spouse or partner, but underwriters generally can't use a non-borrowing spouse's or partner's income to qualify the applicant. That's why they may request W-2s even when the income already appears on a joint return. They need to separate your income from your partner's to determine what can be used toward qualifying.
The more accurately we can document your financial picture up front, the better positioned we are to structure the financing and keep the process moving.
JacksonFirst, I'd challenge the assumption that most aircraft shoppers are talking with a CPA at all! Many of the business owners we serve are bootstrap entrepreneurs. They know the ins and outs of their own work, but not necessarily the tax code. My strongest recommendation is to start working with an accountant today, and if you're serious about buying a plane in the next six months, tell them your plans. They can make sure your tax documents and business financials are in order and in a clear format.
If you've sought bank loans for real estate, expect a similar process for aircraft. It can be surprising that aircraft loan programs can be even tighter than real estate, and not every aircraft lender can underwrite using global cash flow analysis.
One common example: business owners who run certain personal expenses through company accounts without accounting for them. The company receives no benefit, the trail has to be proven out in underwriting, and the borrower looks weaker on paper than in reality. If the same owner takes distributions instead, that increases personal cash flow in the calculation and reduces the paperwork. We do not give tax advice, so check with your CPA early so nuances like these can be evaluated for your situation.
JacksonWe regularly get requests from business owners looking to take advantage of 100 percent bonus depreciation, and for many it's a real benefit. Whether it fits your situation depends on how the aircraft will be used in your business and your overall tax picture, so work that out with your CPA before you sign a purchase agreement.
For background, see FLYING's Your Tax-Free Card: How to Play the Second Half of 2026 and FLYING Finance's guide to navigating bonus depreciation.
Q.How important is a pre-approval right now, and what should first-time borrowers expect?
KimseyWe recommend that anyone within a 90-day shopping or buying window apply for pre-approval, ideally for the top end of their budget. That gives you more flexibility when shopping, lets you negotiate with confidence and helps you move when the right aircraft comes along. It's best to establish what you can comfortably qualify for before you start negotiating, signing contracts or putting earnest money down.
I approach pre-approvals a little differently from the industry-standard stated-income model. I prefer to collect additional documentation up front so the pre-approval reflects what the borrower can realistically expect.
I explain aircraft financing as a two-step process. Step one determines whether the borrower qualifies and establishes the financing parameters. Step two evaluates the specific aircraft and any collateral requirements. With a pre-approval in place, we can move toward closing much more efficiently once you find the exact N-number you want.
JacksonI'm proud of our pre-approval program because it lets pilots shop for an airplane with confidence. Many pre-approvals in lending are partially or fully automated from information the customer states. Ours involves full underwriting of the borrower. When you find the right plane, the remaining work centers on the aircraft itself, which helps us move quickly so you don't miss the deal. Pre-approvals are good for 90 days, so I recommend them for pilots who are ready to buy but haven't found the right fit yet.
To set realistic expectations for first-timers, the process is more like securing a real estate loan than a car loan. It takes time: generally a couple of weeks rather than a couple of days. (More on why a pre-approval strengthens your negotiating position.)
Apply for a FLYING Finance pre-approval online (typically 1 to 2 business days), call us or email finance@flyingfinance.com.
Still deciding between cash and financing? Read Should I Pay Cash for My Aircraft? and Am I Ready to Finance an Aircraft?, or estimate your budget with How Much Aircraft Can I Afford? There's still time to buy before year end, and winter flying in crisp air is right around the corner.
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Every aircraft and every buyer is a little different. Tell us how to reach you and a FLYING Finance specialist will follow up to talk through your aircraft, your numbers and your timing.
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