Why Loan Funding Sometimes Takes Longer Than Expected

One of the most frequent questions borrowers ask is how long it takes to finalize a loan. Generally, if everything goes smoothly, the process can take about two weeks—but that timeline depends on several factors.

A key requirement for staying on schedule is submitting a full set of application materials right from the start. Lenders normally want personal and business financial records from the past two years, recent bank and investment account statements, and a valid photo ID. If any required documents are missing, the process can slow down.

At AOPA Finance, borrowers receive a complete checklist of what’s needed and work with dedicated staff throughout the process. For example, a loan processor helps ensure nothing is overlooked before the file moves forward.

Common Causes of Delay

• Changes in ownership structure: Sometimes applicants decide partway through the process—often after talking with their tax advisor—to own the aircraft through a business entity rather than an individual. When that happens, the FAA registration must match the name on the loan documents. Making adjustments to both applications can add time.

• Adding additional partners: If new owners are added during underwriting, each person must also go through a financial review, which can push back funding.

• Switching aircraft: Aircraft financing isn’t just about the borrower’s finances—lenders also assess the specific airplane being purchased. A pre-approval is tied to both the buyer and a particular aircraft. If the buyer changes which airplane they intend to buy, the lender must reassess whether that new aircraft meets its criteria before releasing funds.

• Finding a different aircraft after approval: Even when a pre-approval is in place, lenders must confirm that the new aircraft fits within the approved terms. For example, some lenders have age limits on the aircraft they’ll finance, which means switching to an older model could trigger extra review.

In short, any change to the key elements of the transaction—borrower, aircraft, or ownership—can extend the time it takes to fund the loan.

Great advice. Great rates. Helpful and responsive reps you can trust. Three good reasons to turn to AOPA Aviation Finance when you are buying or refinancing an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (800.627.5263), or click here to request a quote.