Fund Your Business

With startup costs in hand, its time to acquire funding for your business.

Aircraft aren't cheap...

In addition to the typical start-up funds that any business will need, one of the unique requirements for starting a flight school is acquiring aircraft. It can be a challenge getting an aircraft finance loan for the school as most lenders require evidence of 2-3 years of trackable income to prove the financial stability of the business. You may want to consider some of the following options if you need to get aircraft financing early on in your business: 

If purchased using a personal aircraft loan, it could be leased back to the school under the following typical conditions: 

• Make sure that the finance agreement allows for commercial operation of aircraft (AOPA does offer this), but lenders often require separation between the aircraft owner and the school (e.g., the school owner/operator cannot be the borrower).
• Additionally, annual hourly use limitations on the aircraft may apply.
• Be aware that personal registration may open the aircraft owner to liability if there is an accident etc. It’s not limited liability like a corporation. It will be worth checking with an attorney for guidance on this issue.
• If you have questions about aircraft loans, the AOPA Finance Team is available to answer your questions. Call 800-627-5263.

 You could also get a non-secured loan (personal loan) and then purchase/register aircraft in flight school's name. But be aware that the interest rate will likely be higher.