Refinancing an existing business jet - or releasing equity from one you own outright - is a common and straightforward transaction. Aircraft values in many categories have held up well, and refinancing can release capital for other uses while allowing you to retain the aircraft. We arrange business jet refinancing transactions regularly.
Why refinance a business jet?
Common reasons include: releasing equity from an unencumbered aircraft; replacing an expensive existing facility with a cheaper one; extending the loan term to reduce monthly payments; releasing capital for business investment; or consolidating multiple asset loans.
How much equity can you release?
Most lenders will lend up to 75–80% of the current appraised value of the aircraft. Global Jet Capital can achieve up to 85% LTV on qualifying aircraft. The maximum release is the lender's LTV limit multiplied by the appraisal value, less any existing charge.
Refinancing process
The process is similar to an initial purchase finance: lender selection, application, independent appraisal, legal work and drawdown. For an unencumbered aircraft, there is no existing lender to discharge, simplifying the transaction. Allow 4–8 weeks from enquiry to drawdown.
Rate comparison - refinancing vs new purchase
Refinancing rates are typically the same as purchase rates for the same aircraft and LTV. If you secured your original finance at a higher rate (or many years ago when rates were different), refinancing can deliver meaningful savings.