> ## Content Index > Fetch the complete content index at: https://www.acmiworld.com/llms.txt > Use this file to discover other available public pages before exploring further. # 7 PDP Financing Terms Buyers Should Compare - URL: https://www.acmiworld.com/pdp-financing-terms-buyers-should-compare/ - Published: 2026-09-03T20:25:26.000Z - Updated: 2026-09-03T20:25:26.000Z - Description: 7 PDP Financing Terms Buyers Should Compare with transaction-focused commentary for aircraft buyers, operators, lessors and owners. - Author: ACMI World - Tags: aircraft finance, #Import 2026-09-03 17:53 ## Terms That Determine Pre-Delivery Financing Risk 7 PDP Financing Terms Buyers Should Compare is aimed at new-aircraft buyers comparing progress-payment facilities before aircraft delivery. Each item below can change cash flow, enforceability, technical exposure or exit value even when the headline commercial terms look straightforward. For adjacent transaction work, ACMI World covers [aircraft acquisition financing](https://www.acmiworld.com/financing-options-for-aircraft-acquisitions/), [private jet lenders](https://www.acmiworld.com/private-jet-lenders-in-the-us-compared-for-buyers/), [private jet refinancing](https://www.acmiworld.com/private-jet-refinancing-top-10-companies-in-2026/). Use those pages to place each term inside the wider aircraft transaction rather than reviewing clauses in isolation. ![Contextual aviation transaction image for 7 PDP Financing Terms Buyers Should Compare](https://images.unsplash.com/photo-1569154941061-e231b4725ef1?auto=format&fit=crop&w=2200&q=85) Contextual aviation image via Unsplash. The commercial effect of each point depends on the aircraft, counterparty and governing documents. Transaction Review Convert Every Clause Into a Cash or Control Question Ask who controls the decision, who pays when the event occurs, which documents prove compliance, and what happens if the aircraft cannot be operated, financed, transferred or returned as planned. ## The 7 Points to Review #1 ## Advance Percentage The lender may finance only a portion of eligible progress payments, leaving the buyer to fund the balance as equity. #2 ## Eligible Pdp Definition Define which OEM deposits and progress payments qualify for lender advances. #3 ## Interest On Drawn Amounts Interest normally accrues on funded progress payments as the aircraft moves through production. #4 ## Commitment Fee Undrawn committed capital can carry a fee during the build period. #5 ## Oem Consent Requirements The purchase agreement may restrict assignment, requiring manufacturer acknowledgment or consent to lender security. #6 ## Purchase-Agreement Security The lender may take security over contractual rights, refunds and deposits before a completed aircraft exists. #7 ## Delivery Takeout Mechanics The facility needs a clear repayment or conversion path into permanent debt or lease financing at delivery. ## How to Use the List in a Live Transaction Turn the list into a diligence schedule. Record the current contractual position, requested change, responsible adviser, required evidence and financial consequence for every open item. That keeps legal language tied to operational and economic outcomes. Review Discipline - Quantify the cash effect of every material clause - Assign each diligence item to legal, technical, tax or finance workstreams - Track documents and evidence rather than relying on representations - Model downside cases before agreeing deposits or termination amounts - Confirm closing and post-closing responsibilities in writing ## Frequently Asked Questions Should these points be negotiated before a term sheet is signed? Where possible, yes. Commercial leverage is usually stronger before the parties have invested heavily in documentation, inspections, positioning or closing work. Can standard-form aircraft documents be accepted without changes? Standard forms are useful starting points. The final document still needs to reflect the aircraft, jurisdiction, credit profile, operating model and negotiated economics. Which issues usually create the largest unexpected cash exposure? Maintenance, deposits, minimum utilization, tax, insurance, early termination, redelivery and technical findings frequently create larger cash effects than headline rent or interest alone. Who should review the final transaction documents? Aircraft counsel, tax advisers, technical representatives and financing professionals should review the areas within their scope before closing.