18 August 2026

The New Playbook for Business Aircraft Financing: What Every Buyer Needs to Know

Four IADA-member finance leaders, from PNC, JSSI, First American Equipment Finance and Global Jet Capital, explain how financing strategy and structure now shape business aircraft transactions.

Private business jet with boarding stairs extended on the tarmac at sunset — A private business jet with boarding stairs extended, symbolic of the modern business aircraft acquisition process.

Why this article matters
Business aircraft financing has moved from a supporting part of an acquisition to a strategic decision that can materially affect capital allocation, transaction speed and long-term ownership costs. With aircraft values moving differently across individual types, constrained late-model inventory and elevated OEM backlogs, lenders are placing greater emphasis on the aircraft itself, the financial strength of the buyer and the structure of the transaction.

For buyers, the message from IADA’s finance experts is that the headline interest rate tells only part of the story. Loan-to-value ratios, amortisation, balloon payments, leasing structures, asset quality and financing readiness can all influence the outcome. Establishing financing relationships and preliminary approvals before an aircraft is identified can also provide a significant execution advantage when suitable inventory becomes available.

Of Interest
1. IADA’s finance panel brought together senior representatives from PNC Financial Services Group, JSSI, First American Equipment Finance and Global Jet Capital.

2. Financing models discussed included traditional credit-based lending, asset-based finance, sponsor-based lending and leasing.

3. Aircraft age, production status, utilisation history and maintenance pedigree can influence financing decisions.

4. Buyer liquidity, leverage and cash flow remain central considerations in credit assessment.

5. Loan-to-value ratios, amortisation schedules, balloon payments and ownership structures can materially affect the overall financing package.

6. Late-model aircraft inventory remains constrained across parts of the business aviation market.

7. Financing readiness and preliminary approvals can improve transaction speed when suitable aircraft become available.

An International Aircraft Dealers Association (IADA) White Paper of Insights from Leading Aircraft Finance Experts

For decades, financing a business aircraft was often viewed as a relatively straightforward exercise. A buyer identified an aircraft, selected a lender, negotiated terms, and completed the transaction. While the aircraft itself remained the centre of attention, financing frequently occupied a secondary role in the acquisition process.

Today’s market tells a very different story.

The modern business aircraft transaction is increasingly shaped not only by the aircraft being acquired, but by the financing strategy that supports it. Aircraft values have become more dynamic, inventory remains constrained across many segments, ownership structures have grown more sophisticated, and buyers now have access to an unprecedented range of capital solutions.

These realities were the focus of a panel discussion by four of the industry’s most respected aircraft finance leaders. All of them are members of IADA, the International Aircraft Dealers Association. Moderated by aviation transaction expert Mesinger Jet Sales Vice President Josh Mesinger, the panel brought together:

Patrick Gentile, Senior Vice President at the PNC Financial Services Group
Ben Hockenberg, Chief Investment Officer of JSSI
Sarah Yarnes, Regional Vice President at First American Equipment Finance
Mike Christie, Head of Sales, Americas at Global Jet Capital

Collectively, these experts represent decades of experience financing billions of dollars in business aircraft transactions across domestic and international markets.

There is no universal financing solution

The optimal financing structure depends on the aircraft itself, the buyer’s financial profile, the intended mission, the jurisdiction in which the aircraft will operate, and the owner’s long-term objectives. As Mesinger noted: “We are in a unique time in the market where, depending on the make and model, the age of the airplane and its pedigree, we’re seeing prices go up considerably for some aircraft, stay flat for others and decline for yet other types.”

Navigating Asset-Based Lending

PNC’s Patrick Gentile provided the perspective of one of North America’s most active aviation lenders. At PNC Aviation Finance, solutions range from traditional credit-based lending to innovative asset-based structures.

Gentile pointed to persistent inflation, a strong labour market, and rising energy costs as factors likely to keep pressure on rates. He suggested that the industry is “much more likely to see higher rates than lower rates over the next 12 months.” He emphasised that the value provided by lenders goes beyond capital; it is about helping clients understand market conditions, risks, and strategies that support long-term ownership.

A Market Defined by Resilience and Complexity

Business aviation continues to demonstrate resilience despite economic uncertainty. JSSI’s Ben Hockenberg, whose team evaluates aircraft transactions globally, noted that the market has repeatedly demonstrated an ability to look beyond short-term disruptions.

However, this demand has created challenges. Late-model aircraft face inventory constraints, and OEM backlogs remain elevated. The result is a market characterised by significant segmentation.

Business jet parked in an open hangar at sunset — A business jet parked in an open hangar at sunset, one of the asset types underpinning today’s aircraft financing decisions.

Asset-Based Financing and Aircraft Value

Hockenberg explained that JSSI’s approach begins with understanding the aircraft itself: its age, production status, utilisation history, and maintenance pedigree. “There are 150 different platforms in operation today in business aviation. You cannot paint all of that with a single loan-to-value or valuation lens.” This expertise allows asset-based lenders to offer flexible solutions, including leases and cross-border structures that may not fit conventional banking frameworks.

Sponsor-based Lending and Financial Strength

First American Equipment Finance’s Sarah Yarnes described her company’s approach as centred on sponsor quality. They evaluate liquidity, leverage, and cash flow as primary drivers. “The bank places great emphasis on sponsor quality, and that is at the centre of all credit decisions.”

Yarnes emphasised the importance of disciplined valuation management, noting that while prices rise during demand, corrections eventually occur. Responsible financing must account for both rising and falling markets.

Leasing as a Strategic Capital Solution

For Global Jet Capital, financing extends well beyond traditional lending. As an equity investor in aircraft, the company manages both credit and asset risk. Mike Christie explained that for corporations managing multiple aircraft, leasing provides strategic advantages: “We can help turn aircraft ownership into an expense while helping clients plan how to replace their fleets on a regular basis.”

Beyond Interest Rates: The Importance of Structure

A significant takeaway from the panel was that financing decisions should not be driven solely by interest rates. Loan-to-value ratios, amortisation schedules, balloon payments, and ownership structures all influence long-term outcomes. As Hockenberg stated: “Focusing solely on rates is probably only half the picture. Structure is the other half.”

Business jet flying above clouds at sunrise — A business jet flying above the clouds at sunrise, reflecting the reach and flexibility that modern financing structures now support.

Financing Readiness as a Competitive Advantage

In an environment where inventory is constrained, financing preparedness is crucial. Experienced buyers often begin conversations with financing providers long before identifying a specific aircraft. Establishing relationships and obtaining preliminary approvals can dramatically improve execution speed when the right opportunity arises.

The business aircraft financing landscape has evolved into a strategic tool that influences capital allocation, risk management, and long-term asset value. For buyers, operators, and advisors, understanding the full range of available financing solutions, from bank lending to leasing and asset-based models, is now an essential component of successful aircraft ownership.

Interested in more information? Go here: https://iada.aero/press-release/225/the-new-playbook-for-business-aircraft-financing-what-every-buyer-needs-to-know-an-iada-white-paper-of-insights-from-leading-aircraft-finance-experts