What is Turboprop Finance?
Turboprop finance is a form of specialist asset finance where the aircraft itself secures the loan. It is typically structured as a chattel mortgage or hire purchase agreement, with the lender holding a registered charge over the aircraft for the term. Terms of 5, 7 or 10 years are standard.
Unlike a personal loan, the finance is sized against the aircraft's value - not just your income - and the aircraft is the primary security. Most lenders require a pre-purchase inspection and will instruct their own valuation.
Worked Example - Pilatus PC-12/NGX at £2.5m
Scenario: Private use PC-12/NGX, G-registration, purchased by a UK limited company
| Parameter | Detail |
|---|---|
| Aircraft | Pilatus PC-12/NGX (2021) |
| Purchase price | £2,500,000 |
| Deposit (20%) | £500,000 |
| Loan amount | £2,000,000 |
| Rate (illustrative) | 6.5% fixed |
| Term | 10 years |
| Monthly repayment | ~£22,600/month |
| Total cost of credit | ~£712,000 |
| Lender | Lombard or NatWest (indicative) |
For illustration only. Actual rates subject to credit assessment and aircraft valuation.
Key Lender Considerations
Aircraft Age & Hours
Most lenders apply age and total airframe hours limits. Generally, aircraft under 20 years old with under 8,000 total hours attract the widest lender choice. Older aircraft may be considered by specialist lenders.
Registration Type
G-registration gives access to all 8 lenders. N-registration is accepted by Lombard and Close Brothers. EI-registration is accepted by Close Brothers and AIB UK. M-registration by Lombard and Close Brothers.
Intended Use
Private use is the simplest case. Charter use under an AOC requires lenders comfortable with commercial operations. Flying school or training use is treated as fleet/commercial finance.
Borrower Structure
Limited companies, partnerships, trusts and high-net-worth individuals can all borrow. Lenders typically want 2 years of accounts for companies; individuals need to demonstrate income to service the debt.
Charter Use and Turboprop Finance
Many PC-12 and King Air owners offset operating costs through charter. Lenders take different views: some require the aircraft to be registered on the owner's AOC; others are comfortable with dry-lease arrangements or occasional charter under a managed fleet programme. We advise on the most suitable lender for your intended usage from the outset.
The Finance Application Process
- 1Initial enquiry: Complete our form below. We will call within one business day.
- 2Market presentation: We approach suitable lenders with your anonymised profile.
- 3Indicative terms: Typically returned within 48–72 hours.
- 4Formal application: Full documentation submitted to chosen lender.
- 5Aircraft inspection: Lender-instructed valuation and pre-purchase inspection.
- 6Offer and drawdown: Funds released on completion of legal charge.