The Aircraft Financing Hit List: Top Banks, Financiers, Credit Unions, and Brokers | EP 20

Episode SummaryAircraft financing looks like a simple rate-shopping exercise… until you’re the one stuck in a bad structure, a surprise covenant, or a refinance that won’t clear because the original valuation doesn’t hold up.In this long-form, name-names episode, Jason breaks down how aircraft lending really works (spoiler: lenders underwrite exit liquidity, not your dream), the difference between banks, finance companies, capital/private credit, and credit unions—and where brokers add real value vs. hidden cost.Jason also shares a curated list of active finance brokers he consistently sees execute clean transactions across market cycles, then closes with the mistakes that cost owners the most after closing: non-USPAP “valuations,” replacement-cost thinking, balloons, and covenants nobody reads.Get the complete list of VREF-Recommended Brokers and Lenders in downloadable format at:vref.com/resourcesWhat You’ll LearnWhy aircraft lending is nothing like residential mortgagesThe concept lenders actually care about: exit liquidityWhy the airplane is “conditional collateral” (and what else is being underwritten)Why identical borrowers can get wildly different terms on the same aircraftThe differences between:Major banksRegional/tier-two banksSpecialty lenders/finance companiesPrivate credit/capital firmsCredit unions (and why airline credit unions are a cheat code for pilots)When a broker helps—and when a broker is just friction + embedded costHow brokers get paid (and why “free” is rarely free):Bank-paid pointsRate spreadDouble-dipping (bank points plus borrower fees)Why commercial-use lending is an entirely different universeThe two lender/broker categories Jason says consistently create problems (without naming names)When going direct to a bank beats using a broker—especially for refisThe “Big Four” requirements that separate consistent aviation lenders from everyone elseWhy structure beats rate shopping (especially with SOFR-based pricing)Practical examples: how terms/LTV/rates change at $5M, $500K, and $250K aircraft price pointsThe real “gotchas” that explode later:Non-USPAP valuationsReplacement cost =/= market valueBalloonsCovenants (where the real pain lives)Why now can be a strong refinancing window—and how to structure for optionalityCOMPLETE PODCAST AND SHOW NOTES CAN BE SEEN AT https://vref.com/podcast/Tactical TakeawaysUse a broker when access is the problem (small/older/non-standard aircraft, thin deals, commercial use, weaker credit, outside your banking relationships).Call to ActionGet the complete list of VREF-Recommended Brokers and Lenders in downloadable format at: vref.com/resourcesFor help getting pointed to the right lender/broker: [email protected] valuations, appraisals, and VREF Online: VREF.com