There are many ways to finance an aircraft’s purchase in Australia. You can look into aircraft loans, aeroplane financing, or other aviation loan options. Knowing the various choices can guide you in picking the right aviation loan for your needs. However, choosing the best from the array of options can be challenging.

Interested in the ins and outs of aircraft loan requirements and qualification criteria? Perhaps you’re keen to discover the most competitive rates for aeroplane loans. What about the top aircraft lending firms in Australia? This piece tackles these questions.

This article explores the aircraft financing landscape. We cover the finest loan options, how to qualify, and critical aspects to keep in mind when applying for aircraft loans. Topics include specialized finance for those with active ABNs, the advantages of financing with an ABN, and the debate about purchasing new or used aircraft. We aim to equip you with the insights needed to navigate through aircraft loans in Australia.

If you’re gearing up to accomplish your aviation aspirations, continue reading. We highlight the best choices for aircraft loans available today.

Specialized Finance Options for Active ABNs

There is a unique finance option in Australia for those with active ABNs seeking aircraft loans. Aimed mainly at self-employed, business owners, and pilots wanting to buy aircraft, it offers more favourable loan terms. Additionally, it includes tax benefits tailored for these individuals.

This special financing path grants borrowers access to unique loan rates for their aircraft purchases. They can also enjoy extended tax deductibles. However, it’s crucial to compare different lenders to secure the most suitable financial option.

Minimum Requirements for Aircraft Financing

To secure aircraft financing in Australia, certain essentials must be in place. You must be at least 18 years old to sign a financial agreement. This revolves around both legal and financial norms. Besides, having a valid driver’s license is a must. It confirms your identity and legal ability to fly an aircraft.

Being an Australian resident or citizen is a prerequisite for aircraft financing. This criterion elevates the connection of the applicant with the country. Also, you should present a valid Australian Business Number (ABN) or Australian Company Number (ACN). These numbers are vital for your business’s registration or ownership. They signify your standing in the business world, supporting your aircraft financing application.

The ABN or ACN is key in evidencing your business’s legitimacy. It’s an essential aspect that lenders consider. They want to ensure their funds go to entrepreneurs with a credible, active business. This requirement plays a crucial role in your financing approval.

Fulfilling these requirements is pivotal in getting your aircraft financing application approved. It underscores your seriousness and meets lenders’ expectations. By meeting these preconditions, your path to realizing your aviation dreams becomes smoother.

Types of Aircraft Financing Available

There are numerous financing options for purchasing aircraft. These include hire purchases, chattel mortgages, leases, and non-conforming loans. Each has unique benefits and things to consider.

Both hire purchase and chattel mortgage allow for aircraft ownership. In a hire purchase, the lender buys the aircraft for the borrower, who then repays it over time. Chattel mortgage, however, lets the borrower use the aircraft as loan security, granting immediate ownership.

Leases, on the other hand, don’t transfer ownership but offer flexibility. The borrower makes lease payments for using the aircraft. Leases come as either operating or finance leases, with varying terms.

Non-conforming loans are tailored for those with special financing needs. For example, they may be suitable for individuals with non-traditional income sources or poor credit. These loans offer an alternative to conventional financing.

It’s vital to understand the varied financing options when deciding what’s best for you. Consider your objectives, financial situation, and the aircraft’s long-term use. This analysis will help you choose the most appropriate financing type.

Factors to Consider When Applying for Aircraft Finance

Applying for aircraft finance involves various considerations that lenders closely examine. Your eligibility and the loan terms hinge on these factors. It’s important to be mindful of them when seeking financing.

ABN Age and Activity

The age and activity of your Australian Business Number (ABN) greatly impact your finance application. Lenders look favourably upon businesses with a lengthy operational history and steady activity levels. These indicate your business’s solidity and reliability.

GST Registration

Ensure your business is GST-registered when seeking aircraft finance. It signifies a certain level of business turnover, which is appealing to lenders. This registration proves your business follows financial regulations and generates enough revenue for repayment.

Credit History

Lenders scrutinize your credit history above all else. A positive credit history underlines your financial responsibility in the past. They consider your credit score, repayment record, debts, and past financial difficulties. A solid credit standing is crucial for a favourable outcome on your finance application.

Cash Flow

Your business’s cash flow is a key aspect of the finance evaluation process. It not only supports your daily operations but also your ability to make loan payments. A robust cash flow indicates your business’s financial health and viability.

Business Status

Lenders also evaluate your business’s overall situation. They focus on its industry, profitability, and prospects for growth. Showing that your business is strong and has potential is essential for a successful finance application.

It’s essential to address these points before applying for aircraft finance. Doing so improves your chances of securing the financing necessary to further your business’s objectives.

Benefits of Aircraft Financing with ABN

Utilizing an Australian Business Number (ABN) to finance your aircraft purchase offers significant advantages. These benefits enhance your financing journey in several ways. By doing so, you open doors to a smoother financing process.

GST and Tax Breaks

One significant perk of financing with an ABN is the access it grants to Goods and Services Tax (GST) and tax breaks. These incentives help reduce the financial burden of aircraft ownership. Essentially, they make owning an aircraft more budget-friendly for ABN holders.

No Deposit Options

No deposit options under ABN financing mean you can get funding without an upfront payment. This proves especially useful for those wanting to manage their cash flow. It offers a unique advantage to both individuals and businesses alike.

Quick Approvals and Funding

Speed is crucial in aircraft financing. With an ABN, the process can be quicker, from approval to funding. This ensures minimal delays in acquiring an aircraft. Consequently, it gets you closer to flight sooner than you might expect.

Secure or Unsecured Loans

ABN financing gives you the choice between secure and unsecured loans. A secured loan involves providing collateral, like the aircraft itself, whereas an unsecured loan does not. This choice allows you to tailor your financing to best suit your financial position.

ABN financing offers a full suite of benefits. From tax incentives and no-deposit options to quick processes and loan choices, it simplifies and enriches the aircraft acquisition journey. By opting for ABN finance, you’re ensuring a more efficient and beneficial pathway to owning an aircraft.

Considerations for Purchasing New or Used Aircraft

Deciding between buying a new or used aircraft is crucial. It involves weighing the benefits and drawbacks of each. Doing so will help you make an informed choice.

The advantage of a new aircraft lies in its high residual value. Consequently, it retains its worth well. This is crucial if you plan to sell it later. New planes also come with warranties and assurances of their airworthiness. Such assurances can boost your trust in their condition and dependability.

Choosing a used aircraft may be budget-friendly, as they’re usually cheaper than new ones. Yet, assessing its age, condition, and maintenance history is key. This ensures it’s functional and has been properly cared for.

When making this decision, consider the aircraft’s lifespan. Think about your usage and ownership duration plans. For long-term owners, new aircraft might offer better value. This is due to their higher residual value and expected longer life. If you own it briefly or need to save money, a used plane could be the smarter pick.

To wrap up, the choice between a new or used aircraft merits thoughtful evaluation. Look into aspects like residual value, aircraft age, condition, and longevity. These insights will guide you to the choice that aligns well with your needs and financial situation.


When financing your aircraft purchase in Australia, you have many options. It’s vital to review diverse financing solutions and compare loan rates. Meeting the necessary loan requirements is key to securing funds. Additionally, for those with active ABNs, specialized financing can offer benefits like GST and tax cuts.

Choosing between a new or used aircraft is a major decision. Consider aspects like residual value and the aircraft’s lifespan. This evaluation will guide you on the best aircraft type for your situation.

With thorough analysis and consideration of various financing options, you can wisely fund your aircraft. Understanding the loan application needs and leveraging ABN financing’s advantages is crucial. This approach will help you achieve your aviation aspirations, whether with a new or pre-owned aircraft.