International Aviation Finance Guide

International aircraft financing enables non-US individuals and entities to purchase US-registered aircraft through specialized loan structures. Unlike domestic transactions, international deals require additional documentation, compliance measures, and often involve more complex ownership structures.

The US remains the largest market for business aircraft, with approximately 60% of the global business jet fleet registered under FAA N-numbers. This makes understanding US-based financing essential for international buyers seeking quality pre-owned aircraft or new deliveries.

International transactions typically require more extensive documentation to verify identity, source of funds, and creditworthiness. Lenders must comply with international anti-money laundering (AML) regulations and may require documentation translated and notarized according to specific standards.

Down payment requirements for international buyers generally range from 15-20%, compared to 10-15% for domestic transactions. Loan terms may also be shorter, typically 10-15 years versus up to 20 years for US-based borrowers.

Interest rates for international clients are typically 0.5-1.5% higher than domestic rates, reflecting the additional complexity and perceived risk. However, well-qualified international borrowers with strong financial profiles can often negotiate competitive terms.

Standard documentation for international borrowers includes valid passport, proof of residence, personal financial statements for the past 2-3 years, tax returns or equivalent documentation from the home country, bank statements showing 6-12 months of account activity, and international credit references.

Corporate borrowers must provide additional documentation including articles of incorporation, operating agreements, corporate resolutions authorizing the transaction, and beneficial ownership information for all individuals with significant ownership stakes.

Since FAA registration requires US citizenship or a qualifying structure, international buyers typically use one of several approaches: owner trusts with a US trustee, US-based LLCs or corporations, or Delaware statutory trusts.

Owner trusts are the most common structure, where a US trustee holds legal title to the aircraft while the foreign owner retains beneficial ownership and operational control. This arrangement satisfies FAA registration requirements while providing flexibility for the international owner.

The typical international financing process begins with a preliminary consultation to understand your requirements and provide initial term estimates. Following submission of documentation, underwriting typically takes 2-4 weeks for straightforward transactions.

Once approved, the lender issues a commitment letter outlining final terms. The closing process involves coordination between the buyer, seller, lender, escrow agent, and often an aircraft closing attorney. International transactions typically close within 30-45 days of commitment.