Map every manufacturer payment to its contractual trigger and available funding source; delivery financing should not be assumed to fund earlier invoices or reimburse payments unless the lender expressly permits it.
Finance the payment schedule, not only the delivery-day balance
A new-aircraft purchase can require cash long before the aircraft is ready for delivery. To plan financing, map every deposit, progress payment, adjustment and final balance to its due date, refund conditions and actual funding source. A delivery loan should not be assumed to reimburse every earlier payment or to be available before its closing conditions are satisfied. The important question is which money is available at each stage, not simply whether the final purchase price appears affordable.
This guide addresses the timing problem for a buyer commissioning or reserving a new aircraft. It is separate from a payment calculator and from an application for a completed, identified used aircraft. Manufacturer contracts, production milestones, financing structures and buyer circumstances differ. The examples are original hypothetical cash schedules, not manufacturer terms, promised advance rates or advertised interest rates. Have counsel review the purchase contract and financing documents before a material payment becomes unconditional.
Build a payment-event register from the actual contract
Create a row for every cash event, including the initial reservation or deposit, contract signing, production milestones, optional equipment elections and final acceptance. Copy the controlling contract reference and identify what triggers the due date. A date on a sales brochure may not be the contractual payment trigger. Ask who issues the invoice, what evidence confirms the milestone and what happens if the buyer disputes it. The register should distinguish a refundable amount from a payment that becomes exposed under specified conditions.
Include amounts that remain variable: price escalation clauses, exchange-rate exposure if relevant, completion choices, delivery services and taxes requiring separate advice. Record whether a quoted price includes those items rather than assuming everything is inside a headline total. FedEx's 2026 filing reports aircraft deposits, progress payments and price-escalation exposure in its own purchase arrangements. That is a primary example of staged commitments, not evidence of the terms available for a private buyer's aircraft. FedEx February 2026 filing: deposits and aircraft progress payments
Separate three different funding decisions
First, determine whether the buyer can fund the early payments from available cash. Second, determine whether a lender has actually agreed to finance any pre-delivery stage. Third, determine whether delivery financing is approved and on what conditions. Those decisions can be related without being interchangeable. A lender's willingness to discuss the completed aircraft does not establish a draw facility against a manufacturing position, contract right or unfinished asset.
Ask whether an early payment is expected to count toward the required buyer contribution and what proof will be needed. Confirm whether any reimbursement is permitted, how it is calculated and whether it is subject to final valuation or other limitations. Do not spend an anticipated reimbursement before it has been approved and received. A buyer can have substantial economic equity in a contract while still facing a cash shortfall when an invoice arrives before the financing is ready.
Work through the cash peak before delivery
Assume a hypothetical $10 million contracted price with a $1 million signing payment, a further $1.5 million progress payment and a $7.5 million delivery balance. Assume $8 million of financing is available only at delivery, subject to conditions. Before that closing, the buyer must still fund $2.5 million of payments. If the buyer has $3 million of genuinely available cash, only $500,000 remains after those early payments, before any other obligations. An assumed final financing percentage does not erase that interim cash peak.
At delivery, suppose the lender allows its $8 million advance to pay the $7.5 million balance and reimburse $500,000 of eligible earlier payments. The buyer's net price equity becomes $2 million, but only after closing. If reimbursement is not permitted under the actual structure, the proposed $8 million cannot simply be used as the buyer wishes; the parties must establish an acceptable funding arrangement. These two cases show why the loan proceeds' permitted use belongs in the written plan, not in an informal assumption about total leverage.
| Event | Payment | Cumulative buyer cash before delivery financing |
|---|---|---|
| Signing | $1,000,000 | $1,000,000 |
| Progress milestone | $1,500,000 | $2,500,000 |
| Delivery balance | $7,500,000 | Depends on actual closing funds and permitted reimbursement |
Understand what a pre-delivery facility would actually finance
If pre-delivery financing is considered, ask counsel and the proposed lender to identify the collateral and the buyer's rights. A completed aircraft, an aircraft under construction, a purchase contract and a deposit refund right are not the same asset. The lender must evaluate the rights that can actually support the facility, and the manufacturer may have contractual conditions affecting assignment or consent. Do not assume that an order number creates the same collateral position as ownership of an identifiable delivered aircraft.
The OCC's June 2026 lending handbook discusses disbursement controls, repayment and collateral administration across the credit life cycle. It provides supervisory context, not a promise that a lender will finance a particular manufacturing milestone. OCC June 2026: lending and loan portfolio risk management
The financing request should show how the facility ends. Will it be replaced by delivery financing, repaid from owner funds or resolved another way if delivery never occurs? Identify extension conditions, interest and fees, documentation requirements and the effects of a change in specification or delivery date. An attractive expected monthly cost does not answer the question of who bears a failed or delayed delivery's cash consequences.
Keep registration, ownership and delivery acceptance distinct
The intended borrower and owner should be identified early enough for registration and closing work to be planned correctly. The FAA says registration is in the legal name of the owner and requires an application and ownership evidence. Those requirements are distinct from a lender's approval and from the manufacturer's acceptance procedure. FAA: registration in the legal owner name and ownership evidence
Do not reorganize the buyer entity close to delivery without asking the relevant advisers what must change. The manufacturer, lender, insurer and registration process may each need consistent documentation. Confirm who signs the acceptance, who receives title evidence, when insurance is effective and which conditions authorize funding. A scheduled factory appointment is not itself proof that the aircraft has been accepted, the loan can close or the ownership paperwork is complete.
Use a separate reconciliation for changes after signing. List the original specification, each approved change order, its price effect, any altered milestone and the party that authorized it. A later completion invoice should be traceable to those agreed changes rather than appearing as an unexplained increase in the delivery balance. Ask the lender which changes require renewed review and confirm that financing assumptions still describe the aircraft being delivered. This is particularly useful when the buyer, manager and manufacturer have discussed different versions of an equipment package.
Stress a delayed delivery without assuming a free extension
Suppose the original cash schedule leaves the illustrative $500,000 after early payments. Add an assumed $120,000 of additional financing and ownership-preparation costs during a delay, together with $180,000 of unrelated obligations that still fall due. The remaining available cash drops to $200,000. If a further $250,000 equipment payment becomes due before delivery, the buyer is $50,000 short even though the final contracted price and expected delivery loan have not changed. These are planning inputs, not predicted delay costs.
Check whether rate commitments, credit approvals, appraisals, insurance arrangements or supporting financial documents expire during the delay. An extension can require a fresh decision. The buyer should ask what can change and what evidence must be refreshed rather than assuming every earlier approval survives unchanged. Keep the original schedule, revised delivery notice and resulting cash forecast together so that advisers can see which assumption created the new funding need.
Do not substitute a fragile liquidity source without reviewing it
A buyer may consider selling investments or drawing on another facility to fund a progress payment. Identify the actual settlement timing, collateral restrictions and resulting obligations. FINRA's securities-backed credit guidance explains that pledged securities can face collateral calls and forced sales. That is a separate source of risk, not an equivalent substitute for unrestricted cash. FINRA: securities-backed credit risks and collateral calls
In the worksheet, show that funding source's own repayment and stress case. Avoid counting the same portfolio both as untouched reserve liquidity and as the collateral for a fully drawn bridge. A business distribution may also affect working capital or other obligations. Discuss those consequences with the relevant financial and tax advisers before signing a payment commitment that depends on money being freely distributable when it may not be.
Set stop, extension and acceptance decisions in advance
For each major stage, identify what the buyer needs to know before proceeding: the contract's current status, amount due, remaining available cash, financing position and unresolved acceptance or documentation questions. Assign an internal decision date ahead of the contractual deadline. If the buyer needs an extension or a change to the payment terms, obtain the actual written agreement rather than relying on an expectation that the production team will accommodate a delay.
Maintain a single sources-and-uses schedule that can be reconciled at delivery. It should show every prior payment, any agreed credit, final invoice, financing disbursement and owner contribution. Mark estimated items as estimates and record the documents needed to replace them with final amounts. The closing responsibility checklist can help assign ownership of the last steps, while the cash versus financing guide provides a broader capital comparison.
Jaken Aviation can help organize a financing discussion as a brokerage. Our fees are due at closing; nothing is charged upfront. A manufacturer deposit is a purchase-contract obligation, and separately engaged legal, inspection or escrow services have their own terms. Do not confuse those third-party or seller payments with Jaken's compensation, and do not treat this planning example as a commitment to fund them.
Frequently asked questions
Will a delivery loan pay my progress invoices before delivery?
Only if the actual financing arrangement provides for that use and its conditions are satisfied. A delivery loan should not be treated as a pre-delivery draw facility. Ask which stages the lender will fund, what collateral supports them and who must consent before relying on financing for an earlier invoice.
Will earlier deposits count as my down payment?
They may be relevant to the buyer's investment, but the lender must confirm treatment, supporting evidence and any reimbursement rules. Show the actual payments and contract credits in the sources-and-uses schedule. Do not assume every early outlay is eligible or that a reimbursement will be available before delivery closing.
What should change in my plan if the factory delivery moves?
Update payment triggers, cash peak, approval and rate expirations, insurance timing and any additional costs. Determine what requires a new decision or written extension. A revised delivery date does not automatically extend the financing commitment or change the manufacturer's payment and cancellation provisions.
Does paying for a production position make me the registered owner?
Do not assume so. Purchase-contract rights, ownership evidence, registration and financing collateral need separate review. Ask counsel, the manufacturer and the lender how the specific transaction moves from an order or construction position to delivery and registration, and what must be completed before funds can be released.
Related planning guides
Aircraft Cross-Collateralization: Calculate a Partial Release · Aircraft Loan Covenant Reporting: Build a Reliable Calendar · Aircraft Appraisal Shortfall: Rebuild the Purchase Funding Plan