In this article
Why we draw that line
MFG is a commercial equipment and aircraft finance specialist. We work with business applicants and aviation operators acquiring aircraft for actual commercial activity. We are not accredited to arrange consumer credit for primarily private or recreational aircraft purchases.
An ABN by itself does not turn a private flight into a business purpose. Lenders look at the real use and borrower position. We would not describe a recreational purchase as commercial to obtain a business facility.
Why private aircraft finance can be difficult
Aircraft are specialised assets. Lenders may need to assess type, age, valuation, maintenance records, airworthiness, registration, seller and security arrangements. For a private buyer, the available consumer-credit lenders and their appetite may be narrower than the commercial options we use for an operator.
This does not mean a private purchase is impossible to finance. It means the first conversation should be with someone authorised for the type of credit and security you actually need.
Private sale is not the same as private use
This distinction catches people out. We can consider a commercially used aircraft bought from a genuine private seller, subject to the usual lender and transaction assessment. That does not mean we arrange finance for someone buying an aircraft mainly to fly for recreation. The seller’s identity and the borrower’s real purpose are separate questions. We would ask what the aircraft will do for the business, who will operate it and how the use is evidenced before discussing a commercial facility.
Similarly, holding an ABN or placing the aircraft in a company does not by itself change a personal purchase into a commercial one. If the use is mixed, explain the genuine expected use to an appropriately qualified adviser and lender. We should not make a credit-purpose declaration simply to access a product that would otherwise be unavailable.
What I would prepare for a commercial aircraft conversation
For a real business use, the starting brief should cover aircraft type, age, price, seller, intended operation, location, operator and expected revenue or operational need. The maintenance history, airworthiness and registration position, component life, valuation and insurance may then affect which lender we approach and the conditions of an approval. An imported aircraft or a transaction with international registration requirements adds another layer of documents and timing.
These are reasons to involve a commercial aircraft specialist early, before committing to a settlement date. They are not a promise that every business aircraft or every structure will be approved. For a primarily recreational purchase, start with an adviser authorised for the actual personal credit purpose and consider the risks of any home-secured borrowing with them.
Want to know more or talk through your options? Reach out to James and Dan anytime.