Aircraft Finance Deposit Guide - How Much Do I Need?

• Microlights (BMAA permit): 20-30%. The permit nature and variable secondary market require higher lender cushions.
• Standard GA (Cessna 172, Piper PA-28): 10-20%. Well-understood aircraft with transparent secondary markets attract the most competitive deposits.
• High-performance GA (Cirrus SR22, Beechcraft Bonanza): 10-20%. Strong residual values from the primary market support competitive deposits.
• Gliders and sailplanes: 15-25%. The specialist nature of the market and BGA permit aircraft vary by type.
• Helicopters - piston (Robinson R44): 15-25%. Well-known type with transparent values.
• Helicopters - turbine (Airbus H125, Bell 407): 20-30%. Engine programme requirements and higher values increase the deposit.
• Turboprops (King Air, PC-12, TBM): 20-30%. Engine programme requirements and the specialist maintenance environment drive higher deposits.
• Light jets (Citation CJ, Phenom 300): 25-35%. Type rating requirements and jet operating costs drive higher lender cushions.
• Large-cabin jets (Gulfstream, Global, Falcon): 30-40%. Very high values and complex ownership structures.

Factors that increase the required deposit:

• Older aircraft: an aircraft approaching the end of its TBO cycle (or with high total airframe hours relative to its type norms) carries more residual value uncertainty.
• No engine programme: turboprop and jet aircraft off approved engine programmes attract significantly higher deposits - the lender cannot predict maintenance costs as accurately.
• Foreign registration: N-registered aircraft financed through UK lenders require slightly higher deposits due to the more complex security structure.
• New business or limited financial history: a buyer without an established financial track record - or a new company financing an aircraft - will typically need a higher deposit.
• Adverse credit: any adverse credit history increases deposit requirements across all aviation lenders.

Factors that reduce the required deposit:

• New aircraft from a major manufacturer: a brand-new G-registered Cessna or Robinson, delivered directly from the manufacturer or an authorised dealer, attracts the lowest deposits. The lender knows the value precisely.
• Engine programme enrolment: confirms the value and predictability of maintenance costs. Major engine programmes significantly improve advance rates.
• Strong financial profile: a borrower with a well-established business, strong income, and clean credit history accesses the lowest deposit requirements across the board.

Company aircraft purchases are assessed differently from private individual finance:

For a profitable established company, the deposit requirement may be lower than for a private individual with the same income - the company's balance sheet, trading history, and ability to claim capital allowances and VAT recovery all support a stronger credit profile.

For a new or loss-making company, the directors' personal financial profiles become important - lenders often look through the company to the directors' personal net worth and credit.

Key documentation for company aircraft finance: last two to three years' filed accounts, management accounts if recent years are not filed, and evidence of the business purpose for the aircraft.

Capital allowances: a company purchasing an aircraft for business use can claim capital allowances (including the Annual Investment Allowance up to the relevant threshold) against corporation tax. This effectively reduces the net cost of the aircraft significantly for profitable companies.

The aviation finance deposit cannot be borrowed from the same lender as the aircraft finance - the deposit represents your equity contribution and the lender's security buffer.

However, the deposit can come from:

• Your savings: the most straightforward source.
• Proceeds from selling an existing aircraft: replacing an older aircraft - the sale proceeds fund the deposit on the new one. We can structure these transactions to time both completions.
• Equity release from property: a second charge or further advance on a residential or commercial property can provide the deposit funds. We arrange both the property finance and the aviation finance simultaneously.
• Sale and leaseback of another asset: releasing capital from another asset you own - a vehicle, equipment, or other aircraft - to fund the deposit.
• Business cashflow: for company aircraft, the deposit may be funded from operating cashflow or drawn from the company's reserves.

Effectively no for most UK buyers. True zero-deposit aircraft finance is not a standard product from specialist aviation lenders.

The closest to zero-deposit is 90% LTV on new aircraft from manufacturers who have aggressive sales finance programmes - these occasionally appear for specific models and should not be relied upon.

For microlights and lower-value GA aircraft, some unsecured personal loan products do not require a deposit in the aviation finance sense - but the loan terms (typically shorter term and higher rate) compensate for the higher risk.

For the vast majority of UK aircraft purchases, planning for a minimum 10-15% deposit on standard GA aircraft and 20-30% on turboprops and jets is the realistic position.