Separate the funding of an aircraft order from the loan expected at delivery. Contract milestones and lender commitment dates can create cash needs well before the aircraft is ready to accept.
Map the purchase contract
List order deposit, progress milestones, option changes, acceptance payment and delivery date. Identify refund, assignment, default and delay provisions with advisers. The lender's willingness to finance a completed aircraft does not by itself fund every manufacturer milestone or make a deposit recoverable.
Ask about distinct financing products
AOPA's original new-aircraft discussion highlights the mismatch that can arise between factory payments and delivery loans. Other structures may exist, but require explicit terms. Ask who funds deposits, what collateral or contract rights are required, what fees apply and how interim debt is discharged at delivery. Do not imply availability without a proposal.
Track approval and rate validity
Record expiration, refresh requirements, credit-review changes and rate-lock terms. A manufacturer delay may move acceptance beyond a lending commitment. Keep the lender informed before the date changes materially and ask what new evidence will be required. Avoid budgeting as though a preliminary rate indication remains available indefinitely.
Fund a delayed-delivery case
Model extended charter or current-aircraft costs, deposits already paid, crew timing, training and holding-company expense. Coordinate tax advice around actual delivery and use facts. If a delay crosses an anticipated tax period, ask the tax adviser to revisit the plan rather than treating a hoped-for benefit as guaranteed cash.
Illustrative decision worksheet
Illustrative only: a contract requires a $500,000 order deposit and $500,000 progress payment before acceptance. A proposed delivery loan funding only at closing does not supply that earlier $1 million. Show its source, timing and eventual reimbursement or continued equity explicitly; do not count the same deposit twice in final cash-to-close.
Your next-step checklist
- Contract milestone table
- Interim funding terms
- Commitment expiration
- Delayed-delivery budget
Sources & further reading
Primary sources support the relevant facts. Our planning questions and illustrative exercises are editorial analysis; they do not replace transaction-specific advice.
- AOPA original new-aircraft delivery financing discussion · accessed 2026-10-28