Aviation Finance

  • Fast service - finance within 5 to 7 days
  • Access to specialist lenders
  • Expert advice - professional service 

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Aviation Finance

Purchasing an aircraft is a significant investment that requires specialist finance. Whether you are looking for a helicopter for private use, a small jet for business travel, or a commercial investment, aviation finance can provide the tailored funding that you need.

With solutions that range from asset-leveraged loans to shorter-term leasing agreements, flexible financing for aircraft is here to help you get smoothly into the air.

At Clifton Private Finance, we work with trusted financial institutions with the understanding and experience needed to provide supported aviation finance for any need.

  • Aircraft and Helicopters
  • Finance from £25,000 - £100m
  • Terms up to 15 years
  • Aviation Mortgages
  • G and N registered aircrafts

Asset Finance Success Stories

£13m Asset Finance Loan for Pharmaceutical Business | Case Study
£13m Asset Finance Loan for Pharmaceutical Business
Area
London
Capital Raised
£13m
Date
November 2024
Fleet of Vans Refinanced to Release £160k for Business Growth
Fleet of Vans Refinanced to Release £160k for Business Growth
Area
Cardiff
Capital Raised
£160k
Date
September 2024
Fast Asset Finance for Two Tractors at Low Rate | Case Study
Fast Asset Finance for Two Tractors at Low Rate
Area
Somerset
Capital Raised
£558k
Date
July 2024

 See All Business Finance Case Studies

Why Our Customers Trust Us

With expert guidance, asset finance can provide an essential, versatile, cost-effective solution.

business finance rates

Market-Leading Rates

We provide access to market-leading rates for every client, thanks to our relationships with asset finance lenders across the market.

Award Winning Team

Multi-Award-Winning Team

Our team of asset finance advisers have years of experience and are qualified to the highest level. We're proud to have numerous customer service awards to our name.

independent advice

Fully Independent

As an independent brokerage, we focus on your best interests when comparing asset finance options: from costs and terms to speed of service.

To book a free, no-obligation call with an adviser to discuss your options, contact us today.

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Our Experts

Our dedicated asset finance team have deep industry knowledge and years of experience.

Meet The Team

Jon Moffatt

Jonathan Moffatt

Head of Business Finance

Ben Francis

Ben Francis

Finance Executive

James Ellcaott

James Ellacott

Commercial Finance Broker

How We Work

1. Get a Customised Quote

Our asset finance brokers will get an understanding of your business and your requirements, look at your financial forecasts and accounts, and provide a sense-check on what product(s) will best fit your needs, as well as how much you could borrow, and what the costs and terms could look like.

2. Compare Options

When you’re happy with the proposed solution, we’ll go away and compare options across the market. We’ll often present a range of choices ranging from lowest cost to most flexible, and we’ll talk you through the pros and cons of each if it’s a close decision.

3. Submit Your Application

If you’re happy with the terms we can source, we’ll handle the paperwork and submit your application for you. We’ll handle any issues and questions that may arise from the lender, and we’ll keep chasing your application to ensure funds are released as quickly as possible.

4. Receive Funds

You receive your finance success! We’ll always be here for any ongoing questions or support you require during your loan term. 

Speak to an asset finance specialist today

Get the funding your business needs to reach its full potential. We’ll guide you through the process and take care of the heavy lifting. 

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Authors

Guide to Aviation Finance

with Jonathan Moffatt & Sam Hodgson

Last Updated: 19/02/2025

The Aviation Finance Options 

At a glance, aviation finance can seem similar to more common vehicle finance, however, there are key differences that come about from the differences in both the size of the capital investment and the slower depreciation that comes from stronger secondary-market value. For lower rates and cost-effective financing, it is essential that you obtain aviation finance from a specialised lender who tailors their products with these unique characteristics in mind.

Typical aviation finance options include:

1

Asset-Secured Aircraft Loan

Structured as an asset-based loan with the aircraft serving as collateral, a secured aircraft loan represents a basic repayment structure that results in final ownership at the end of the term. Payments are made monthly for the agreed length of the loan, with transfer of the plane or helicopter’s ownership once repayment is completed.

1

Finance Lease

Aircraft-based finance leasing is developed for easier cash flow during a mid- to long-term leasing period, and a final balloon payment designed to transfer ownership at the end of the leasing term. Finance leases for aircraft are often structured with larger upfront payments and substantial final payments to provide a lower monthly payment that represents less financial stress on day-to-day outgoings. Final ownership is often optional, providing flexibility that considers real-world financial changes towards the end of the term.

3

Operating Lease

With full ownership retained by the leasing provider, operating leases are a cost-effective aircraft rental, typically involving maintenance and servicing packages that provide a worry-free approach to aircraft use. Set monthly payments that cover the majority of ownership and usage obligations are easy to manage and budget, and the ongoing support from the leasing company eliminates many ownership concerns. At the end of the lease, the aircraft can either be returned or the lease extended.

Unlike traditional asset finance (such as car loans), aviation finance involves more complex assessments that include the aircraft valuation, your financial history and creditworthiness, aircraft experience, and your knowledge and compliance with all aviation regulations. 

The Cost of Aircraft Financing

Aviation finance involves several factors to determine its overall cost to you. These include:

  • The Aircraft Value - More expensive aircraft require larger loans...

  • The Aircraft Age and Valuation - A full valuation of the aircraft will be required, which can lead to additional valuation fees in the case of secondary market and older models.

  • Loan to Value (LTV) - A deposit of 10% to 30% is typically required, resulting in LTV of 70% to 90%. Lower LTV ratios will benefit from more flexible terms and lower rates, making larger deposits a significant factor in determining the monthly cost of the aviation finance.

  • Your Creditworthiness - If you are looking at aviation finance as a private individual, your credit history, income, and monthly outgoings will be scrutinised by the finance provider; businesses must provide relevant business financials and forecasting to present the appropriate profile for borrowing on the required scale.

  • Interest Rates and Loan Terms - The majority of aviation finance involves terms from 5 to 10 years, with interest rates that may be fixed or variable, and will be based on the current market conditions and risk assessment.

  • Usage - Both core financing structures and insurance are affected by your projected usage. Aircraft with higher expected usage will result in greater monthly costs, with end-of-term fees applied if set usage limits are exceeded. 

Obtaining Aviation Finance

Aircraft funding is a tailored solution that requires in-depth consultation with finance specialists. It is advisable to engage the services of a professional broker such as Clifton Private Finance to ensure a smooth application process as well as to secure better terms.

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Stage One - Consultation

An initial consultation process is essential. It is important for all parties to thoroughly assess your needs and cover the full cost of aircraft ownership, with financing and running costs all fully accounted for.

This stage may also include specialist consultation regarding the purchase of the preferred aircraft, ensuring that all regulations are met and that the contract of sale is properly undertaken.

At Clifton PF, we will evaluate the potential aviation finance providers who are best aligned with your financial position and need and discuss the pros and cons of each option with you thoroughly, providing impartial advice needed for you to make a fully informed decision.

1

Stage Two - Application Submission

Working alongside our specialist team at Clifton Private Finance, you will prepare your application. This includes obtaining all essential documentation, including identity documents, financial statements (if a business) or proof of income and affordability (if as an individual).

Your application will also include full details of the chosen aircraft and its value.

Supporting documentation, such as your developed plan for the aircraft usage and adherence to all aviation regulations and guidelines, will be prepared and submitted during this stage.

3

Stage Three - Loan Structure and Approval

The finance providers will assess your application and structure a suitable financing package to meet your unique requirements.

Your partners at Clifton Private Finance will be on hand to help negotiate and finalise any funding structure at this stage to ensure your needs are fully considered and met.

4

Stage Four - Completion

The agreement is finalised, all fees and deposits paid, and the aircraft bought. Congratulations. 

Aircraft Types and Estimated Monthly Financing Costs

How much does buying or leasing an aircraft actually cost? To help understand the true cost of aviation finance, below is a list of popular aircraft types, their estimated purchase prices, and the expected range of monthly financing costs over ten-year terms.

The lower end of the estimated monthly payment range reflects leasing options and more favourable interest rates, while the higher end accounts for full ownership loans and higher interest financing.

(For illustration only. This data assumes a 20% deposit and no final balloon payment.)

Aircraft and Monthly Aviation Finance

Aircraft Model

Estimated Purchase Price

Estimated Monthly Payment

Cessna 172 Skyhawk

£250,000

£2,300 - £3,200

Piper PA-28 Cherokee

£150,000

£1,400 - £1,900

Cirrus SR22

£600,000

£5,600 - £7,800

Beechcraft Bonanza G36

£800,000

£7,400 - £10,300

Robinson R44 Helicopter

£400,000

£3,700 - £5,200

Cessna Citation CJ3+ (Private Jet)

£7,000,000

£65,000 — £90,300

Note that this table only includes the cost of purchasing the aircraft - fuel, regulatory fees, maintenance, and other costs are additional and must be considered for comprehensive budgeting. 

Aviation Finance with Clifton Private Finance

Aviation finance requires a fully customised approach with dedicated finance specialists to guide you from the initial consultation through to the final purchase. Clifton Private Finance have the expertise and track record needed to provide the strongest support to ensure you obtain the aviation funding you need.

Working with us means:

  • A tailored finance solution that puts your needs first - Every client is different, so we begin by listening to you and your specific circumstances, aligning our experience and knowledge of the marketplace to your individual requirements.

  • Access to expert advice and guidance - Our background in obtaining high-value asset-based loans for our clients, both in aviation and other sectors, gives us the knowledge you need to make a truly informed decision. With no bias, we will guide you through your options and present every benefit and disadvantage of each potential funding offering so that you can select the one that best works for you or your business.

  • The most flexible terms and competitive rates - With established relationships with the key players in aviation finance in the UK, we’re able to provide access to specialist aviation funding products that have the lowest rates, with terms that are tailored to your unique circumstances.

  • A smooth application process - Our team work obtaining high-end finance for our clients every day, giving us the experience to ensure a smooth and effortless application process. Our standard operating procedures have been honed over years to make sure no document is forgotten and no potential stumbling block is left unconsidered. By working with us, you ensure that the whole application process simply flies by.

If you are looking to purchase or lease an aircraft, getting you the swiftest transportation to enjoy both business and leisure anywhere in the world, speak to Clifton Private Finance today.

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Frequently asked questions

You can find the most common questions asked about asset finance loans below. If you have a question that isn't answered here, please email us at commercial@cliftonpf.co.uk

Asset finance is a way of spreading the cost of equipment used by businesses over time, allowing companies to keep a strong, consistent cash flow whilst minimising upfront costs.

There are many asset finance products to choose from when considering asset finance, such as hire purchase, operating leases and finance leasing, so there are plenty of options to consider for your every business need.

The asset financing structure is the financial arrangement organised between businesses and lenders to secure funding to acquire equipment that is directly related to the operation and growth of the business.

Asset financing typically involves several key elements, which are as follows:

Assets used as collateral:

A lender will likely secure finance against the asset itself or other assets, which can be tangible or intangible.

  • Tangible Assets: vehicles, construction equipment, real estate, or inventory.
  • Intangible Assets: intellectual property, accounts receivable, revenue streams.

Types of Asset Financing:

The following is a list of several products available to business owners as options for asset finance:

Leasing: Businesses that choose to lease do not outright own the asset and pay a monthly cost to use the equipment at a much lower cost than purchasing the equipment.

Hire Purchase (HP): A standard choice for businesses, this option allows you to eventually own the asset you’re paying for after the payment period has ended.

Asset-Based Lending (ABL): A business borrows money against an asset as collateral, and it’s commonly used to acquire working capital for operational or growth needs.

Loan-to-value (LTV): The loan-to-value ratio of assets is the calculation of a percentage which helps to determine the risk of the loan itself. A high LTV ratio typically indicates a higher interest rate for businesses as it’s far riskier to finance.

A low loan-to-value ratio is generally more comfortable for lenders, lower repayment periods and lower fees ensure that the asset can be repaid easily. If an asset depreciates over time, however, and becomes under-collateral, this means that the lender wouldn’t be able to fully recover the amount owed if the asset is repossessed.

Should there be a major decrease in collateral value, lenders might seek to acquire additional collateral from the business owner, or even increase fees and interest, impacting cash flow.

Business loans are products designed for general use throughout businesses. They can be used for general business needs, including asset finance, which has the added benefit of the asset not necessarily being used as collateral for the loan itself.

Asset finance, however, is more specific: its use is for the acquisition of assets and is restricted to only that. Lenders will use the asset itself as collateral for improved lender comfort, being reclaimed in the event that you do not pay your asset finance.

One major distinction between asset finance and business loans is interest rate: asset finance interest is typically lower compared to unsecured business loan interest, which is notably higher.

Should you fail to repay your asset finance, you can face an impacted credit score and ultimately lose the asset in a repossession.

Depending on the asset you’re funding, there’s also a risk of depreciation - particular risk for vehicle finance.

In some cases, if a machine you’re financing is essential to the functioning of your business operations, then factors such as depreciation or loss of efficiency of the equipment can cause lender discomfort, leading to slightly higher interest rates.

Equipment financing is typically used by growing businesses looking to limit the impact on cash flow from an expensive piece of equipment by spreading the cost over a period of time.

Small and medium-sized businesses (SMBs) can use equipment finance to limit the loss of capital and scale up operations without a massive upfront cost to deal with. Accessing equipment finance isn’t limited to a single industry, its uses spread from healthcare with MRI scanners, to construction, manufacturing, agriculture and more.

Let us do all the hard work of finding the right product and lender for your circumstances. We secure business finance for applications of all types, and we negotiate competitive lending to meet your needs and timescales.

Book a consultation and speak to one of our experts today

Jonathan Moffatt
Head of Business Finance