Most jets above US$10 million are financed even when the buyer could write the cheque: debt keeps capital working elsewhere and shifts residual risk. But aviation lending in Asia is a relationship market — there is no rate comparison site, and the difference between a good structure and a lazy one is measured in basis points and in whether the deal closes at all. Here is how it works in 2026.
Who actually lends
Private banks (the global names active across Singapore, Hong Kong and Dubai) lend to clients with assets under management, treating the jet as part of a wider relationship — best pricing, highest LTVs, but the AUM comes first. Specialist aviation financiers such as Global Jet Capital price the asset on its own merits: faster underwriting, structures like operating leases, margins a step wider. Regional banks in Japan, Singapore and the Gulf participate selectively, usually on newer metal with local anchor clients. For older or unusual aircraft, expect asset-based lenders — or cash.
The shape of a 2026 deal
| Term | Typical range |
|---|---|
| Loan-to-value | 60–80% (newer, liquid types) · 50% or less past 15 years of age |
| Pricing | Floating over term SOFR; margins commonly ~2–4% |
| Tenor | 3–7 years, amortised over 10–15 with a balloon |
| Security | Aircraft mortgage + IDERA, registered under Cape Town where available |
| Covenants | Insurance minimums, maintenance-programme enrolment, base and use restrictions |
Lenders love what the resale market loves: programme-enrolled engines, clean records, liquid types like the G550, Challenger 350 or Phenom 300E. Thin-market aircraft finance poorly regardless of condition.
Structure: where Asia gets specific
The lender's collateral lives or dies on the registry. Cape Town Convention jurisdictions with tested enforcement — Cayman (VP-C), Isle of Man (M-), Aruba (P4-), San Marino (T7) — give creditors a predictable path to repossession, which is why financed aircraft across Asia so often wear offshore flags even when the owner never touches a tax haven otherwise (see the registration guide). The borrowing entity is typically an SPV in a neutral jurisdiction, with personal or corporate guarantees behind it; the import and tax structure must be agreed with the lender before closing — see the country-by-country tax guide.
Practical sequencing
Engage the lender at LOI stage, not after the PPI: underwriting, valuation and Cape Town filings take weeks, and financing contingencies weaken your offer in a tight market. Bring the data room lenders expect — spec sheet, records summary, programme status, intended base and operator — and the process runs in parallel with inspection instead of after it. Then close through escrow as usual (the full sequence here).
Sources & further reading
- Global Jet Capital — business-aviation financing structures.
- AWG — Cape Town Convention resources and practice.
- CMS Expert Guide — aircraft finance & leasing by jurisdiction.