The Aircraft Financing Hit List: The top Banks, Finance Companies, and Credit Unions (and the brokers who actually deliver) | EPISODE 20

Episode Summary

Aircraft financing looks like a simple rate-shopping exercise… until you’re the one stuck in a bad structure, a surprise covenant, or a refinance that won’t clear because the original valuation doesn’t hold up.

In this long-form, name-names episode, Jason breaks down how aircraft lending really works (spoiler: lenders underwrite exit liquidity, not your dream), the difference between banks, finance companies, capital/private credit, and credit unions—and where brokers add real value vs. hidden cost.

Jason also shares a curated list of active finance brokers he consistently sees execute clean transactions across market cycles, then closes with the mistakes that cost owners the most after closing: non-USPAP “valuations,” replacement-cost thinking, balloons, and covenants nobody reads.

Get the complete list of VREF-Recommended Brokers and Lenders in downloadable format at:

vref.com/resources

What You’ll Learn

• Why aircraft lending is nothing like residential mortgages
• The concept lenders actually care about: exit liquidity
• Why the airplane is “conditional collateral” (and what else is being underwritten)
• Why identical borrowers can get wildly different terms on the same aircraft
• The differences between:
  • Major banks
  • Regional/tier-two banks
  • Specialty lenders/finance companies
  • Private credit/capital firms
  • Credit unions (and why airline credit unions are a cheat code for pilots)
• When a broker helps—and when a broker is just friction + embedded cost
• How brokers get paid (and why “free” is rarely free):
  • Bank-paid points
  • Rate spread
  • Double-dipping (bank points plus borrower fees)
• Why commercial-use lending is an entirely different universe
• The two lender/broker categories Jason says consistently create problems (without naming names)
• When going direct to a bank beats using a broker—especially for refis
• The “Big Four” requirements that separate consistent aviation lenders from everyone else
• Why structure beats rate shopping (especially with SOFR-based pricing)
• Practical examples: how terms/LTV/rates change at $5M, $500K, and $250K aircraft price points
• The real “gotchas” that explode later:
  • Non-USPAP valuations
  • Replacement cost =/= market value
  • Balloons
  • Covenants (where the real pain lives)
• Why now can be a strong refinancing window—and how to structure for optionality

COMPLETE PODCAST AND SHOW NOTES CAN BE SEEN AT https://vref.com/podcast/

Tactical Takeaways

• Use a broker when access is the problem (small/older/non-standard aircraft, thin deals, commercial use, weaker credit, outside your banking relationships).
• Call to Action

• Get the complete list of VREF-Recommended Brokers and Lenders in downloadable format at: vref.com/resources
• For help getting pointed to the right lender/broker: [email protected]

For valuations, appraisals, and VREF Online: VREF.com