For many companies, an aircraft is not a luxury—it's a critical business tool that saves time, increases efficiency, and creates opportunities. Securing business aircraft financing requires a different approach than a personal loan, with a focus on corporate structure and financial health.
Structuring the Loan: Corporate vs. Personal Guarantee
Most business aircraft are owned by a dedicated entity, such as an LLC or S-Corp, for liability protection. When financing the aircraft, the loan is made to the business entity. However, lenders will almost always require a personal guarantee from the company's principals. This means that if the business defaults, the individual guarantors are personally responsible for the debt.
What Lenders Need from Your Business
When underwriting a corporate aircraft loan, lenders conduct a thorough review of the business's financial health. Be prepared to provide:
- Business Tax Returns: Typically for the past 2-3 years.
- Financial Statements: Including profit & loss statements and balance sheets.
- Business Plan: A summary of how the aircraft will be used to support the business.
- Personal Financials: From all principals who will be guaranteeing the loan.
Make Your Aircraft a Business Asset
We specialize in structuring aircraft loans for corporations and LLCs. Let us help you navigate the documentation and find a lender that understands your business needs.
Get a Business Loan QuoteTax Considerations
Owning an aircraft in a business can provide significant tax advantages, such as accelerated depreciation. However, the rules are complex and depend on how the aircraft is used (e.g., Part 91 for internal corporate travel vs. Part 135 for charter). It is absolutely essential to work with a qualified aviation tax advisor to ensure you are structuring your ownership and operations for maximum benefit and full compliance.
Disclaimer: Jaken Aviation does not provide tax advice. Please consult a qualified tax professional.