Aircraft PDP Financing for Business Jets
Guide to aircraft PDP financing, progress payments, bridge facilities and pre-delivery financing for new Gulfstream, Bombardier and Dassault business jets.
Ordering a new Gulfstream, Bombardier or Dassault business jet can require substantial capital long before the aircraft is delivered. Manufacturers typically collect a series of contractual progress payments during the production period, creating a funding requirement while the buyer still has no completed aircraft to mortgage.
Pre-delivery payment financing, usually shortened to PDP financing, addresses that gap. A lender or lessor finances some or all of the eligible manufacturer installments before delivery and then either receives repayment when the aircraft delivers or converts the exposure into the buyer's permanent aircraft loan or lease.
PDP financing is particularly relevant in the current new-aircraft market because production slots for desirable large-cabin business jets can extend years into the future. A buyer may therefore have millions of dollars committed to an aircraft that remains in production while the same capital could otherwise remain inside an operating company, family-office portfolio or other investment.
This guide covers aircraft PDP financing, business jet pre-delivery financing, progress payment facilities, PDP bridge financing, security structures, underwriting, delivery takeout and financing for new Gulfstream, Bombardier and Dassault aircraft. Buyers evaluating conventional aircraft debt can also compare private jet lenders in the United States and aircraft acquisition financing options .
How PDP Financing Works
Finance the Aircraft Before the Aircraft Exists as Completed Collateral
The buyer signs a new-aircraft purchase agreement and becomes obligated to make specified payments before delivery. The PDP financier funds agreed installments as they become due. Because the completed aircraft is not yet available as collateral, the lender instead takes security over contractual rights associated with the aircraft purchase.
At delivery, the PDP exposure can be repaid from the buyer's cash, refinanced into a conventional aircraft loan or incorporated into an operating lease or finance lease.
What Is Aircraft PDP Financing?
Pre-delivery payments are contractual installments paid to an aircraft manufacturer before delivery of a newly ordered aircraft. The exact payment schedule is negotiated in the purchase agreement and can differ significantly by manufacturer, model, buyer and delivery position.
A buyer may make an initial deposit to secure the order, followed by further payments at defined dates or production milestones. The remaining purchase price is then settled at delivery.
PDP financing provides a credit facility against some or all of those eligible pre-delivery installments. Instead of the buyer funding each progress payment entirely from its own liquidity, the financier advances money according to an agreed borrowing schedule.
Global Jet Capital, one of the specialist business-aviation financiers that publicly offers this structure, describes the product as progress-payment financing and states that the funded investment can subsequently roll into an operating lease, finance lease or conventional aircraft loan at delivery.
Why Finance Pre-Delivery Payments?
PDP financing is principally a capital-allocation tool.
Consider a company ordering a large-cabin business jet for delivery two or three years from now. It may be perfectly capable of paying every manufacturer installment in cash. The financing question is whether leaving that capital tied up in an undelivered aircraft represents its most efficient use of liquidity.
A corporate buyer may prefer to preserve cash for acquisitions, working capital or capital expenditure. A family office may want to keep its investment portfolio deployed. An entrepreneur may want to avoid drawing liquidity out of an operating company several years before the aircraft becomes usable.
Financing also allows the buyer to structure the pre-delivery and post-delivery periods as one capital plan rather than treating the manufacturer deposits and final aircraft financing as unrelated transactions.
Preserve Liquidity
Reduce the amount of buyer capital sitting in an aircraft order during a long production period.
Protect Credit Capacity
A specialist PDP facility can avoid using an operating company's general-purpose revolving credit line for aircraft deposits.
Secure Delivery Slots
Financing can help a qualified buyer meet a time-sensitive manufacturer deposit requirement without waiting for permanent aircraft financing.
Coordinate the Takeout
The facility can be structured from inception to transition into a delivery loan or lease.
Business Jet Pre-Delivery Financing
Business jet PDP financing differs from financing a completed aircraft because the lender cannot simply place a conventional aircraft mortgage over an asset that has not yet been delivered.
The lender therefore underwrites two things simultaneously: the buyer's credit and the value of the contractual position that ultimately leads to the completed aircraft.
The purchase agreement becomes central. A lender will want to understand the aircraft model, contract price, payments already made, remaining PDP schedule, anticipated delivery date, contractual rights following a delay or cancellation and the ability to assign or step into relevant purchase rights.
This is why a buyer should involve the PDP financier early. Trying to finance deposits after the purchase agreement has already been negotiated without considering lender security can create unnecessary documentation problems.
Aircraft Progress Payment Financing
The terms progress payment financing and PDP financing are often used interchangeably in business aviation.
The facility is normally structured so that drawings correspond to contractual payments due to the manufacturer. Instead of advancing the entire loan on day one, the lender makes one or more advances as the relevant installments become payable.
Interest is therefore generally calculated on amounts actually funded rather than the eventual completed-aircraft purchase price. A facility can also carry commitment fees, legal expenses and other closing costs depending on the lender and structure.
The actual percentage of each PDP financed is credit-specific. Buyers should be cautious with claims that progress payments are universally funded at one fixed loan-to-value ratio. Aircraft model, buyer credit, purchase-contract protections and permanent financing all affect leverage.
A Typical Business Jet PDP Financing Structure
| Stage | Buyer / OEM | Financier |
|---|---|---|
| Aircraft order | Buyer signs manufacturer purchase agreement | Reviews purchase contract and borrower |
| Initial equity | Buyer normally funds agreed initial equity or deposit | Establishes financing commitment |
| PDP dates | Manufacturer requires scheduled installments | Funds eligible progress payments |
| Production | Aircraft moves through build and completion | Maintains exposure under PDP facility |
| Delivery | Buyer accepts aircraft and final purchase price becomes payable | PDP loan repaid or rolled into permanent loan or lease |
Lender Security
Before Delivery, the Purchase Agreement Matters More Than an Aircraft Mortgage
Because the aircraft is still being manufactured, PDP lenders typically look for security over the purchaser's rights associated with the aircraft order rather than relying solely on a conventional aircraft mortgage.
Depending on the transaction, this can include a security assignment of purchase-agreement rights, rights to deposits and refunds, contractual proceeds, relevant ownership interests and agreed step-in arrangements. Manufacturer consent and acknowledgment can therefore become central pieces of the financing documentation.
PDP Bridge Financing
PDP bridge financing is a shorter-term variation of the same concept. It can finance one or several manufacturer payments during the period before the permanent aircraft financing becomes available.
For example, a buyer may have a large progress payment due in 60 days but expect the full aircraft financing package to be finalized closer to delivery. A bridge lender can fund the interim requirement and receive repayment from the permanent lender once the completed-aircraft facility closes.
Bridge financing can also become relevant when the original aircraft order was funded with cash and the buyer later decides to release capital already committed to the transaction.
The principal risk is takeout execution. If the bridge facility assumes that a second lender will refinance the exposure at delivery, buyers should understand whether that takeout is already committed or merely expected. A long-range aircraft arriving without permanent financing can create a very large cash requirement at precisely the point the remaining purchase balance becomes due.
What Happens to PDP Financing at Aircraft Delivery?
There are several possible takeout structures.
The buyer can repay the PDP loan from cash and own the aircraft outright. A bank can refinance the PDP facility and remaining purchase price into a conventional secured aircraft loan. A lessor can acquire the aircraft and roll the pre-delivery exposure into a finance lease or operating lease.
Using the same financier before and after delivery can simplify execution because the lender already understands the buyer, aircraft contract, OEM and delivery timeline.
Global Jet Capital publicly documents exactly this approach. It has completed business-jet transactions in which PDP financing transitioned into an operating lease, finance lease or term loan when the aircraft delivered.
PDP Financing for Gulfstream, Bombardier and Dassault Aircraft
PDP financing is most relevant to factory-new aircraft where a meaningful period exists between order and delivery. The structure can be particularly useful on large-cabin and ultralong-range aircraft because the total capital committed before delivery can be substantial.
Financing availability is not determined solely by the manufacturer's name. Lenders underwrite the specific model, purchase agreement, delivery slot, contract value, buyer and permanent financing strategy.
Gulfstream PDP Financing
New Gulfstream G700 , G800, G600 and G500 orders can represent natural candidates for progress-payment financing where the buyer meets lender requirements.
Global Jet Capital has publicly documented a PDP facility for a new Gulfstream G500 that converted into a term loan. Shearwater Global Capital has also completed PDP financing secured against purchase rights for Gulfstream G280 aircraft.
Bombardier PDP Financing
New Bombardier Global 7500 , Global 8000, Global 6500 and Challenger 3500 purchases can also create significant pre-delivery funding requirements.
Global Jet Capital has publicly disclosed PDP financings for both a Challenger 3500 and Global 7500, demonstrating that the structure is actively used for Bombardier corporate aircraft.
Dassault Falcon PDP Financing
Buyers ordering aircraft such as the Dassault Falcon 6X , Falcon 8X or Falcon 10X can approach specialist business-aviation lenders for pre-delivery structures.
The lender will still need to approve the specific purchase contract, advance schedule, delivery date, buyer credit and security package. There is no universal OEM financing percentage.
PDP Financing for Corporate Aircraft Buyers
Corporate buyers are often particularly strong candidates for PDP financing because the aircraft is usually being acquired to support a financially established operating business rather than as a standalone speculative asset.
The lender will nevertheless assess the financial strength of the actual borrower and guarantor. Putting the aircraft purchase agreement inside a newly formed special-purpose company does not cause the lender to ignore the credit standing of the corporation or beneficial owner ultimately supporting the transaction.
The financing can be structured around a corporation, family office, aircraft-owning SPV or another approved entity. The optimal structure should be coordinated with aircraft counsel, tax advisers and the permanent lender before the purchase agreement and security documents are finalized.
Buyers should also coordinate the financing structure with the eventual aircraft acquisition and escrow closing .
What a PDP Lender Will Review
PDP financing normally requires more than a copy of the aircraft order form. A lender has to underwrite both the borrower and a transaction that will remain incomplete for months or years.
Buyer Credit
Net worth, liquidity, company financials, cash flow, debt and guarantor strength.
Aircraft Model
Current market demand, expected value at delivery and liquidity of the specific aircraft type.
Purchase Agreement
Contract price, assigned rights, cancellation provisions, refunds and transfer restrictions.
PDP Schedule
Amounts already paid, future installments and timing relative to anticipated delivery.
Delivery Position
Production slot, expected delivery date and consequences of an OEM delay.
Permanent Financing
Whether the PDP lender will provide the takeout or another lender will refinance the exposure at delivery.
How Much Does Aircraft PDP Financing Cost?
There is no reliable standard interest rate for business jet PDP financing.
Pricing depends on borrower credit, leverage, financed aircraft, remaining construction period, purchase-agreement protections, delivery risk, permanent financing and the type of lender providing the facility.
A strong investment-grade corporation financing a new large-cabin jet can present a very different risk from a thinly capitalized aircraft SPV seeking a highly leveraged bridge facility.
In addition to interest, a transaction may involve arrangement or commitment fees, lender counsel, borrower counsel, security-document expenses, OEM consent work and other closing costs. Buyers should compare the total cost of capital rather than the interest margin alone.
Delivery Risk
The Financing Needs to Survive an Aircraft Delivery Delay
New aircraft do not always deliver on the originally expected date. Certification, supply-chain issues, completion work, technical findings and production delays can move the closing.
PDP documentation should therefore address what happens if the delivery date moves beyond the original facility maturity. Global Jet Capital has publicly described a Challenger 3500 PDP transaction in which it worked with the buyer through a delayed aircraft delivery before transitioning the financing into the post-delivery structure.
Aircraft PDP Financing Firms in the USA to Consider
PDP financing is a more specialized market than ordinary aircraft lending. The following U.S. firms are relevant to buyers of corporate aircraft, although their individual credit appetite, minimum transaction size, jurisdiction and available structures should always be confirmed directly.
Dedicated PDP Specialist
1. Global Jet Capital
Global Jet Capital is one of the clearest first calls for a business-jet buyer seeking genuine pre-delivery financing rather than simply a loan at aircraft delivery.
The company explicitly offers progress-payment financing for new business aircraft and can transition the funded PDP balance into an operating lease, finance lease or loan after delivery.
Its published transaction history includes PDP financing for a Bombardier Challenger 3500, Gulfstream G500 and Bombardier Global 7500. In 2026, Global Jet Capital's CEO again identified pre-delivery financing as part of the firm's core product set for buyers dealing with two- and three-year new-aircraft lead times.
Private Debt and Construction Financing
2. Shearwater Global Capital
Atlanta-based Shearwater Global Capital is a direct private-debt lender focused on business aircraft and other aviation assets.
Its current National Aircraft Finance Association profile specifically identifies pre-delivery and construction financing among the transactions it targets.
Shearwater also has a documented PDP financing track record involving four Gulfstream G280 purchase agreements. This makes the firm particularly relevant where the buyer needs private-credit flexibility rather than a conventional bank-only solution.
Large Private Credit Transactions
3. Eldridge Capital Management
Eldridge is another U.S. capital provider worth approaching for larger or more structured business-aviation transactions.
The International Aircraft Dealers Association lists Eldridge's aviation-finance market as including asset-based loans and leases for midsize and large-cabin business jets as well as PDP loans.
Eldridge is based in Plano, Texas and operates across a broader private-credit and equipment-finance platform, making it relevant for corporate buyers requiring a substantial structured facility rather than a small retail aircraft loan.
Corporate and High-Net-Worth Financing
4. Bank of America Global Corporate Aircraft Finance
Bank of America Global Corporate Aircraft Finance is relevant to larger new-aircraft buyers requiring sophisticated financing around a corporate or private-banking relationship.
The bank finances new and pre-owned fixed-wing aircraft through traditional loans, tax operating leases, synthetic leases and capital-markets structures, and identifies transactions of USD 5 million or more as its preferred segment.
Bank of America's public product page does not advertise a standardized PDP product in the same way Global Jet Capital does. Buyers should therefore discuss the progress-payment requirement specifically and determine whether the bank will finance the pre-delivery stage or participate as the permanent delivery lender.
Permanent Aircraft Financing
5. PNC Aviation Finance
PNC Aviation Finance is one of the largest dedicated corporate-aircraft lending teams operating inside a U.S. bank.
PNC offers asset-based loans, conventional credit-based aircraft loans and multiple lease structures for corporate and private aircraft. It states that traditional credit transactions can reach up to 100% loan-to-value for qualifying borrowers.
As with Bank of America, PNC does not publicly present a standardized business-jet PDP facility on its main aviation page. It is nevertheless highly relevant to buyers arranging the permanent financing that will take out a separate PDP bridge facility at delivery.
Which PDP Financing Firm Fits Which Buyer?
| Firm | Potential Fit | PDP Position |
|---|---|---|
| Global Jet Capital | New large business jets, corporate buyers, family offices | Explicit progress-payment product and delivery takeout |
| Shearwater Global Capital | Private-debt and less conventional credits | Pre-delivery and construction financing |
| Eldridge | Larger structured and asset-based transactions | PDP loans publicly identified in aviation mandate |
| Bank of America GCAF | HNW, corporate and Fortune 1000 buyers | Discuss case-specific PDP / permanent takeout |
| PNC Aviation Finance | U.S. and Canadian corporate aircraft buyers | Strong candidate for permanent delivery financing |
How to Arrange PDP Financing
A well-prepared new-aircraft buyer can normally approach PDP lenders before every detail of the permanent aircraft financing is finalized, but the lender will need enough information to understand the entire transaction.
| Step | Action |
|---|---|
| 1. Aircraft order | Provide OEM, model, contract price and delivery slot. |
| 2. PDP schedule | Identify payments already made and every remaining contractual payment date. |
| 3. Credit package | Provide borrower and guarantor financial information appropriate to the requested facility. |
| 4. Structure | Agree buyer equity, financed PDP percentage, interest, maturity and delivery takeout. |
| 5. OEM documentation | Coordinate purchase-agreement security, acknowledgments and required manufacturer consent. |
| 6. Draw and delivery | Fund progress payments and transition into the permanent aircraft financing when delivered. |
Documents to Prepare for a PDP Financing Request
- Executed aircraft purchase agreement or advanced draft
- Aircraft model and specification
- Total contract price
- Current delivery date or delivery window
- PDP payments already made
- Remaining manufacturer payment schedule
- Requested financing amount
- Borrowing entity and proposed aircraft ownership structure
- Corporate or guarantor financial statements
- Liquidity and net-worth information where applicable
- Anticipated registration and aircraft base
- Part 91, charter or other proposed use
- Preferred delivery loan, operating lease or finance lease structure
Risks Buyers Should Review Before Financing PDPs
Financing progress payments improves liquidity but adds another contractual layer to an already complex aircraft acquisition.
A buyer should understand the consequences of cancelling the aircraft order, an OEM delay, a borrower default, a change in aircraft specification and failure to obtain the expected permanent financing at delivery.
The security arrangements can also affect the buyer's ability to modify, assign or sell its delivery position. The lender may require consent before material amendments are made to the purchase agreement.
For that reason, aviation counsel should review the PDP loan alongside the OEM contract rather than treating the financing as an ordinary unsecured corporate credit facility.
Finance the Entire Aircraft Acquisition, Not Just the Delivery
A new business jet can consume capital years before it becomes an operating asset. PDP financing gives qualified buyers a way to finance that construction-period exposure rather than leaving every manufacturer payment funded with idle equity.
Global Jet Capital, Shearwater Global Capital and Eldridge are particularly relevant because their public mandates specifically include business-jet PDP or progress-payment financing. Large corporate aircraft lenders such as Bank of America and PNC can also become important when structuring the financing that takes over at delivery.
The strongest transaction establishes the aircraft order, PDP facility and permanent takeout as one coordinated financing strategy before the buyer has millions of dollars locked into the production process.
Aircraft PDP Financing FAQ
What does PDP mean in aircraft financing?
PDP means pre-delivery payment. These are contractual payments made to an aircraft manufacturer before a newly ordered aircraft is delivered.
Can pre-delivery payments on a business jet be financed?
Yes. Specialist business-aviation lenders can finance eligible manufacturer progress payments for qualified borrowers. Availability depends on the buyer, aircraft, purchase agreement, payment schedule and permanent financing strategy.
How does aircraft progress payment financing work?
The lender establishes a facility and advances funds against eligible manufacturer payments as they become due. At aircraft delivery, the PDP loan is normally repaid or incorporated into a longer-term aircraft loan or lease.
Can Gulfstream pre-delivery payments be financed?
Yes, subject to credit approval and transaction structure. Publicly disclosed PDP financings have included Gulfstream G280 and G500 aircraft, and specialist lenders can evaluate other new Gulfstream models on a case-by-case basis.
Can Bombardier progress payments be financed?
Yes. Published business-aviation financing transactions have included PDP financing for Bombardier Challenger 3500 and Global 7500 aircraft.
Can a Dassault Falcon order qualify for PDP financing?
Potentially. A lender can evaluate progress-payment financing for a new Falcon order based on the buyer's credit, the model, contractual rights, remaining payments and delivery financing.
What collateral secures a PDP loan?
Before aircraft delivery, security can include the buyer's rights under the purchase agreement, rights to payments or refunds and related contractual proceeds. Additional security and guarantees depend on the individual transaction.
What is PDP bridge financing?
PDP bridge financing is a shorter-term facility used to fund one or more pre-delivery payments before a permanent aircraft loan or lease becomes available. The bridge is normally repaid or refinanced at delivery.
Can PDP financing convert into an aircraft lease?
Yes. A specialist financier can structure the pre-delivery exposure so that it transitions into an operating lease or finance lease when the completed aircraft is delivered.
When should a buyer arrange PDP financing?
Ideally before large manufacturer installments become due and, where possible, while the aircraft purchase agreement can still be reviewed with lender-security requirements in mind.
