Leasing & Financing FAQs

Organizations should evaluate factors like cash flow priorities, ownership objectives, tax strategy, and how long the equipment will be used. Leasing can help reduce upfront costs, preserve working capital, support access to updated technology, and align payments with the asset’s useful life.

Equipment leasing typically offers faster approvals, no covenants or blanket liens, and more flexibility in structuring terms than traditional bank loans.

Equipment leasing can help provide predictable payments, align costs with equipment usage, and preserve borrowing capacity for other priorities.

Equipment lease approvals may consider factors such as an organization's time in operation, financial profile, payment history, type of equipment, and size of the transaction.

First American can often deliver a credit decision in as little as two business days for qualified projects that meet client and transaction criteria.

An equipment lease can help preserve cash flow by spreading costs over time instead of requiring a large upfront payment. Key considerations include monthly payment amount, term length, payment timing, and how well payments align with revenue or usage cycles.

Lease terms typically range from 24 to 84 months, depending on the asset type, industry, and project scope. 

A finance lease generally resembles ownership, while an operating lease is often structured more like a rental with greater end-of-term flexibility. Under ASC 842, leases are classified as finance or operating based on factors such as ownership transfer, lease term, purchase options, and the present value of payments.

Under ASC 842, leases are classified as finance or operating based on ownership transfer, lease term, purchase options, and the present value of payments. These criteria determine balance sheet treatment and financial reporting.

A loan typically results in immediate ownership, with the asset recorded on the balance sheet and depreciation recognized over time, while a lease may or may not result in ownership depending on the structure and end-of-term options. The right choice depends on cash flow objectives, tax strategy, and long-term capital planning. 

Yes, depending on the lease provider. First American offers up to 100% financing, which can include soft costs such as installation, delivery, software, and training—allowing total project costs to be bundled into one predictable payment.

Yes, equipment leases can support mid-term upgrades and evolving project needs through flexible structures like Fair Market Value (FMV) leases and lease lines. Lease lines can simplify add-ons by allowing new equipment to be added over time under an established agreement, rather than starting a brand-new contract for each transaction. 

Yes, a sale leaseback (also known as a cash reimbursement) allows an organization to sell owned equipment to a lessor and lease it back while continuing to use the asset. This creates additional liquidity that can be used to reinvest in other areas of the business.

Equipment financing may provide tax benefits through depreciation deductions or lease payment deductions, depending on structure, asset type, and tax position. Organizations should consult tax advisors to evaluate specific outcomes.

Key considerations include cash flow priorities, balance sheet impact, tax strategy, asset lifecycle, flexibility needs, and long-term capital planning goals.

First American offers a wide range of leasing and financing structures, including: 

• Fair Market Value (FMV) Lease: Pay for use rather than ownership, with options to extend, return, or purchase the equipment at lease end.
• Fixed Purchase Option Lease: Lease equipment with low monthly payments and a known buyout cost upfront, with options at lease end to purchase or extend.
• Lease Line: Bundle multiple projects into a single lease line of credit.
• $1 Buyout Lease: Own the equipment for $1 at the end of the lease term.
• Tax-Exempt Lease: Finance equipment at low tax-exempt rates for nonprofit organizations.
• TRAC Lease: Lease commercial vehicles with the option to purchase for a predetermined value at the end of the lease.
• Sale Leaseback: Refinance recently purchased equipment and receive up to 100% of the original purchase price.

Organizations often use centralized lease and asset management systems to track equipment by location, department, serial number, and contract terms. At First American, clients have access to an online account platform with real-time asset visibility, customizable reporting, and tools to manage leases across locations.

Asset tracking and reporting are usually managed through a centralized system that provides visibility into leased assets, locations, and contract details throughout the lease term. Some organizations use internal tools, while others use platforms provided by their leasing company. First American offers an online account with customizable reporting, API integration, and the ability to view and update assets by serial number, location, lease number, and description.

At the end of a lease, end-of-term options give organizations flexibility to manage costs and choose the best path for the equipment’s next stage. Depending on lease structure, options may include:

• Returns: An option for equipment that’s ready to be replaced or refreshed. The lessee should confirm condition requirements, packaging standards, and any fees for excess wear, and plan logistics early.
• Extensions/Renewals: A way to keep equipment in place longer without starting a new procurement process. Most leases require advance notice (often 30–90 days), and terms may be more favorable when planned ahead.
• Buyouts: A good option when the equipment still meets operational needs and ownership makes sense. Review the contract’s purchase option and fair market value, then evaluate whether keeping the asset aligns with future plans. 

Equipment returns at the end of a lease are typically managed through a structured process that includes verifying the asset’s condition against the leasing provider's standards, completing documentation, and ensuring data security for IT equipment. After approval from the leasing provider, the asset is packaged and shipped to the designated return location. The equipment is inspected and any applicable charges are reviewed and resolved.

Normal wear and tear generally means the equipment functions as intended and has no cosmetic wear that would impact resale value.

If leased equipment is not returned at end of term, most providers assess charges based on the value defined in the lease agreement, often fair market value. At First American, any missing equipment identified during the return audit is typically billed at fair market value.

In some leasing arrangements, providers may consider accepting functionally equivalent replacement equipment, subject to condition standards and contractual review. At First American, like-for-like substitutions may be accepted if the replacement equipment is functionally equivalent, in comparable condition, and approved as part of the return review process.

First American primarily serves middle-market and large organizations, including investment-grade and publicly traded entities, supporting projects ranging from approximately $100,000 to $100 million or more.

First American supports organizations across a wide range of industries, including healthcare, education, nonprofit, manufacturing, food and beverage, logistics and distribution, technology, life sciences, power and utilities, dental, and professional services.

First American works with organizations in regulated and equipment-intensive industries by structuring transactions that reflect industry-specific requirements, asset characteristics, and compliance considerations. Experience within specialized sectors helps anticipate documentation needs, equipment standards, and operational constraints.

An industry-focused financing provider like First American understands sector-specific equipment lifecycles, regulatory environments, and budgeting practices. This insight can help support more aligned structures, smoother execution, and long-term equipment planning.

First American is one of the largest equipment finance companies in the U.S., offering a highly tailored leasing experience supported by dedicated service teams and digital account management tools. As a wholly owned subsidiary of City National Bank, an RBC company, First American combines industry specialization with personalized support and flexible lease options.

Yes, First American supports eligible equipment financing transactions across the U.S. and Canada, subject to credit approval and operating requirements.

Yes, First American can work with international vendors to finance equipment for U.S.-based lessees, subject to credit approval and transaction requirements.

First American's lease terms can be structured to align with equipment lifecycles, budget cycles, and end-of-term preferences, including options for extensions, returns, or purchases.

Yes, First American supports complex, multi-location projects with a dedicated Project Manager, digital lease management tools, and coordinated support from rollout through end of term.

Commonly financed technology includes computers and laptops, tablets, smartphones, printers and copiers, servers, networking equipment, phone systems, security systems, and related infrastructure.

Technology financing helps spread costs over time rather than requiring a large upfront payment. This approach can help preserve working capital, align expenses with useful life, and support more predictable budgeting.

Organizations can use technology financing to spread hardware costs over predictable monthly payments, helping preserve working capital while maintaining access to the latest equipment.

Operating leases give organizations the flexibility to upgrade equipment at the end of each term, helping keep technology aligned with performance requirements and lifecycle expectations.

Financing can support ROI by preserving working capital and enabling faster deployment of technology. First American works with organizations to structure financing that aligns technology investment timelines with operational and budgeting priorities.

Financing can help organizations deploy cybersecurity tools, monitoring services, and infrastructure upgrades without delaying implementation due to budget timing constraints.

Leasing programs can cover laptops, software, networking equipment, and cybersecurity tools under a single payment structure, helping organizations spread deployment costs over time rather than requiring large upfront capital outlays.

Technology financing terms typically range from three to five years, depending on asset life and refresh strategy.

End-of-term options vary depending on the lease structure. Many First American clients use operating leases for technology projects, which provide options to return, extend, or purchase the equipment at the end of the term—supporting a disciplined refresh cycle.

Many software applications and software-related costs may be eligible for financing, including SaaS subscriptions, annual renewals, enterprise agreements, cloud infrastructure, ERP and CRM systems, cybersecurity tools, and data platforms. Implementation, integration, training, deployment, data conversion, configuration, and third-party development services can often be included as part of the overall financing structure.

Yes, software-only projects can often be financed without hardware or physical equipment. Eligibility depends on factors like term length, project scope, and credit profile. First American can support both hardware-bundled and software-only initiatives.

Equipment financing companies like First American often have broader flexibility to finance both software and the related costs required to deploy it. Unlike many traditional lenders, they can include implementation, integration, training, and other project services alongside software licenses. They can also bundle software with hardware and infrastructure into a single financing structure, helping organizations manage complex technology projects under one agreement.

Financing for large software initiatives can be structured to spread payments over time rather than paying upfront. This can include subscription-based software, annual renewals, and implementation services—helping align payments with usage and internal budget cycles.

Yes, financing can be structured to support multi-year implementations and phased rollouts, with funding aligned with vendor invoices, annual renewals, project milestones, or rollout phases. Implementation and related services may be financed over a longer term than the subscription period, depending on the project.

Software financing helps convert large, upfront costs into predictable payments over time. This approach can help preserve capital, reduce budget spikes from one-time software or implementation costs, and improve budget flexibility for long-term technology initiatives.

Financing can help organizations manage rising SaaS and cloud costs by spreading subscription fees and annual renewals over a defined term. This helps create more predictable budgeting—even as usage grows, renewal costs increase, or pricing models evolve.

Software financing terms often range from 12 months to 3–5 years, depending on the agreement and what’s being financed. Many First American clients align annual subscription renewals to a 12-month structure, while implementation, deployment, and related services may be financed over a longer term based on scope and credit profile.

• Furniture and Fixtures: Ergonomic chairs, modular desks, storage units, movable walls, artwork and décor
• Smart Systems: Lighting and LED retrofits, climate control, HVAC, energy upgrades
• Technology: IT hardware, handheld devices, servers, software programs, A/V equipment
• Networking: Routers, switches, firewalls, network cables

• Facility Upgrades: Warehouse expansions, production lines, robotics, automation, roofing, flooring
• Campus Renovations: Classroom renovations and technology, dorm furniture, athletic facility upgrades

Evaluate financing during the planning phase to align payments with project timelines and vendor contracts. Beginning early helps organizations build a complete budget, secure favorable terms, and prepare for unexpected costs.

Budget beyond construction and equipment—include architectural design, permitting, project management, IT upgrades, and related soft costs. 

A digital twin is a virtual model that helps organizations test layouts, equipment placement, and workflows before construction. It can reduce costly mistakes, improve space utilization, and support better decision-making throughout the project.

Tenant Improvement Allowances (TIAs) typically cover basic construction but exclude upgrades like IT, security, and branding. Bridging the funding gap with financing helps avoid surprises and keeps the project budget on track.

Start permitting and ESG planning early, as delays and added costs are common. Include sustainability, electrical, and HVAC upgrades in the budget and consider flexible financing for phased investments. 

Organizations can mitigate financial risk by building contingency into their financing plan to account for potential cost increases, labor constraints, or supply chain delays. Phased or milestone-based structures can also support flexibility as project requirements evolve, helping accommodate adjustments in how and when funds are deployed.

Yes, milestone-based financing releases funds as work progresses, reducing interest on unused capital and supporting phased renovations. 

Installation‑period financing covers deposits and early vendor payments, allowing organizations to only incur costs on funds released to date. This approach preserves working capital and aligns payments with project milestones.

Organizations finance renovation and expansion projects with First American to gain specialized support and flexible solutions for complex initiatives, including:

• Custom structures: Operating, capital, and fixed purchase option leases aligned to accounting, tax, and balance sheet considerations
• Comprehensive project coverage: Financing that can support a broad range of project costs, including installation-period financing
• Dedicated support: Project Managers help streamline the process by coordinating with vendors, managing purchase orders, and assisting with invoicing across the project lifecycle

Explore these case studies to hear directly from industry peers.

A wide range of energy efficiency initiatives can be financed, including HVAC systems, lighting retrofits, building controls, and on-site generation such as solar photovoltaics (PV), cogeneration, and geothermal. As technologies evolve, the range of eligible projects continues to expand, often supported by financing programs, rebates, or tax incentives.

Organizations typically finance sustainability projects like EV chargers, solar installations, LED lighting, and HVAC upgrades through a mix of third-party financing, internal capital, and government incentives and/or tax credits. The right approach depends on priorities such as upfront cost, long-term savings, tax considerations, and administrative complexity, with many organizations focused on aligning investment timing with expected energy savings.

The most common financing options for sustainability projects include:

• Cash (CapEx): Full ownership with potential tax benefits, but requires significant upfront capital
• Traditional loans: Predictable payments and ownership, with added debt and documentation requirements
• Leases (operating or capital): Lower upfront costs, predictable payments, and flexibility across vendors and timelines
• Green loans and programs: May offer lower rates or incentives, but often come with stricter requirements
• Power Purchase Agreements (PPAs): Pay only for the energy produced, typically through a long-term service agreement
• Energy-as-a-Service (EaaS): Third party owns and maintains equipment, with recurring service-based payments
• On-bill financing: Utility-supported programs with repayment through energy bills, often with limited flexibility

When deciding how to finance sustainability upgrades, organizations typically consider upfront costs, expected payback period, eligibility for incentives, ownership preferences, maintenance responsibilities, and tax and accounting objectives. 

Yes, many organizations combine financing options to structure projects more effectively. Blending leases, loans, incentives, rebates, or service-based models can help reduce upfront costs, improve cash flow, and align financing with project goals.

Yes, energy audits are often financed alongside equipment upgrades when bundled into a single project. This approach helps connect projected savings to the equipment investment, which can strengthen the financial case and support access to funding.

Incentives, tax credits, and rebates can reduce the overall project cost, which may improve financing terms or lower payment amounts. In some cases, financing structures can account for these benefits when they are predictable and measurable.

Projected energy savings may be considered as part of the overall financial profile, depending on the structure. Some lenders and programs incorporate expected savings when evaluating project viability, loan size, or repayment terms.

First American supports energy projects with financing structures designed to align with project timelines, incentives, and expected savings. Flexible structures, combined with experience across complex ESG projects, help organizations move forward with upgrades while managing upfront costs and long-term financial impact.

Medical equipment financing allows healthcare organizations to acquire essential equipment by spreading payments over time instead of paying the full cost upfront. This includes options such as Fair Market Value (FMV) leases, $1 buyout leases, and tax-exempt financing.

Hospitals choose leasing as a practical way to modernize essential clinical equipment while managing financial and operational pressures. Financing can help:

• Improve financial flexibility by allowing hospitals to align equipment costs with utilization and revenue, helping them respond more effectively to fluctuating patient volumes and service-line demands.
• Extend capital budgets by replacing large upfront costs with predictable monthly payments, allowing funds to stay focused on staffing, patient care, and facility needs.
• Support clinical quality and regulatory compliance by enabling hospitals to refresh rapidly evolving technologies such as imaging, patient monitoring, and lab devices at regular intervals.

A few ways healthcare organizations can secure more competitive terms include leveraging group purchasing organizations, requesting bids from multiple funding sources, and evaluating the total cost of ownership across various financing structures.

Bonds can provide nonprofit healthcare organizations with a cost-effective solution for long-term improvements while equipment leasing is typically better for shorter-lived assets such as technology, medical equipment, and furniture. Equipment leasing can help providers: 

• Lower overall interest costs
• Align financing with asset useful life
• Receive approval and funding within days rather than months
• Avoid additional collateral requirements, covenants, and hidden fees

Healthcare organizations use $1 buyout and FMV leases to acquire medical equipment. Typically $1 buyout leases are chosen for equipment expected to stay in service long-term, while FMV leases are used when equipment will be replaced regularly.

First American offers financing for a wide range of medical equipment, including:

• MRI, CT, PET
• Linear accelerators
• Robotic surgery systems
• Infusion pumps
• Digital mammography
• Ultrasound equipment
• Nuclear cameras
• Cath labs
• PACS
• Patient monitoring
• Laboratory equipment
• Ambulances
• EHR and EMR implementation

First American structures leases for healthcare organizations by offering customized terms that align with capital plans and the useful life of medical, IT, and facility equipment. This often includes multi-vendor bundled financing and flexible features like deferred, step, or progress payments. Typical term length for medical equipment ranges from 3 to 7 years. 

First American has earned HFMA’s Peer Review designation since 2011—recognition that helps healthcare leaders identify trusted financial providers based on value, effectiveness, and ease of use. More than 1,000 healthcare organizations have worked with First American on a wide range of priorities and needs.

Financing manufacturing and automation equipment can offer a range of financial and operational benefits:

• Accelerate productivity: Modern equipment and automation can help improve efficiency and production output.
• Spread costs over time: Financing allows manufacturers to access needed equipment without requiring large capital investments upfront, helping preserve liquidity and flexibility.
• Align payments with revenue: Custom payment structures can align costs with production ramp-up and anticipated profitability.
• Plan for the future: Putting equipment costs into a structured, fixed payment can make it easier to budget for future upgrades while helping preserve capacity on other lines of credit.

Manufacturers often use multiple funding sources to match initiatives with the most appropriate lender and financing structure. Financing equipment separately from bank lines can help preserve working capital and maintain borrowing capacity for other needs. It can also help align equipment costs with broader cash flow objectives.

By working with an equipment lessor, manufacturers can align costs to the anticipated ROI of each project—offering an alternative to drawing on longer-term debt or floating lines of credit.

Acquiring manufacturing equipment with long lead times typically requires financing that aligns with production, delivery, and installation milestones. First American works with manufacturers to structure financing for specialized or hard-to-source equipment, helping coordinate funding with evolving timelines and supply chain conditions.

One key consideration is the cost of capital going out the door up front versus using installation period financing. Long lead times can mean months of cash outlay before equipment is operational. Milestone-based structures allow manufacturers to incur costs only on funds released to date, helping bridge project-timing gaps while preserving cash for ongoing business needs.

Milestone-based financing allows equipment vendors to be paid as project milestones are completed—such as production, shipment, delivery, or installation. In many cases, lease payments are structured to be lower during the early phases of the project, with full payments beginning once the equipment is installed and operational.

Because funding is tied to project progress, it can adjust if delivery or installation timelines shift. If production is delayed or schedules change, this allows for flexibility in how and when funds are deployed.

Financing for manufacturing equipment can be structured to align with project timelines, production schedules, and cash flow objectives. Common structures include:

• Fair Market Value (FMV) leases to support flexibility at end of term
• Fixed purchase option structures for defined cost of ownership
• Milestone-based and installation period financing to align with project execution
• Flexible payment structures such as step, deferred, or seasonal payments

Terms typically range from three to seven years depending on asset life and project scope. Structures can also be aligned to production contracts or revenue timing, helping ensure payments correspond with when equipment begins generating value.

First American finances a broad range of manufacturing-related assets beyond standard production equipment. Commonly financed equipment and project components include:

• Production, CNC, and precision machining equipment
• Robotics, automation, and integrated production systems
• Metal forming, stamping, press, laser cutting, and welding equipment
• Injection molding, extrusion, and plastics processing systems
• Packaging, labeling, production, and end-of-line equipment
• Paint, blasting, coating, and finishing systems
• Material handling, forklifts, trucks, trailers, and warehouse automation
• Cold chain, refrigeration, and temperature-controlled systems
• Plant expansions, building improvements, and facility infrastructure
• Staff training and operational readiness programs

First American has worked with more than 800 manufacturers nationwide, financing a wide range of production, automation, and facility projects. This experience helps ensure clients receive financing tailored around equipment lead times, installation schedules, and production ramp-ups.

Solutions for manufacturing equipment are part of First American's core offerings—not a side product. Manufacturing-aligned finance professionals help structure leasing to match how each business operates, so manufacturers can focus on production while their capital strategy is supported behind the scenes. 

Explore these manufacturing case studies to hear directly from industry peers.

First American works with manufacturers across a range of ownership structures, including family-owned businesses, ESOPs, and private equity-backed organizations. For family-owned and ESOP businesses, financing can help maintain ownership control while supporting liquidity and operational flexibility. For PE-backed manufacturers, financing can support acquisition activity, growth initiatives, and EBITDA-focused operating strategies while preserving existing credit facilities. Across these ownership structures, First American can tailor financing to align with each organization’s broader capital goals. 

Commercial fleet financing spreads vehicle costs over time rather than requiring an upfront purchase. This approach helps replace large capital outlays with predictable payments that support cash flow management, fleet reliability, and ongoing replacement cycles.

Most commercial vehicles can be financed, including semi-trucks, tractor trailers, refrigerated trucks, box trucks, bucket trucks, yard trucks, flatbeds, buses, and EV’s. Financing can also support mixed fleets across different vehicle classes.

No, vehicles do not need to be selected before starting the financing process. Early planning or pre-approval can help clarify budgeting needs and timing before final vehicle decisions are made.

Yes, upfits and customizations are often included in the total financed amount, covering items such as shelving, safety equipment, and technology systems.

Fleet financing supports EV adoption by spreading costs over time, allowing organizations to phase in new vehicles while maintaining predictable cash flow and replacement schedules.

A Terminal Rental Adjustment Clause (TRAC) lease combines predictable payments with end-of-term flexibility.

Key benefits include:

• Lower upfront costs compared to purchasing outright
• Fixed monthly payments
• Option to purchase at a predetermined residual value
• Flexibility to structure residual values to align with fleet objectives

Yes, fleet financing can support multi-year replacement strategies with predictable terms and schedules. Vehicles are often rotated on cycles ranging from 3 to 7 years, using structured payments that align with budgeting and cash flow planning.

Yes, in some cases, owned fleet vehicles can be used in a sale leaseback to access capital. Eligibility depends on factors such as credit profile, vehicle condition, asset age, and overall business strength.

Older fleet vehicles may qualify for refinancing or sale‑leaseback financing, depending on credit evaluation and asset condition. Not all vehicles or borrower profiles are eligible.

Organizations choose First American for fleet financing to support vehicle lifecycle planning and cash flow management, including:

• Flexible structures: TRAC leases and other options aligned to fleet strategy and operational needs
• Scalable solutions: Financing that can support fleets of varying sizes and multi-location operations
• Streamlined management: Dedicated support and digital tools that simplify lease management from origination through end of term

Aircraft financing is offered by banks, bank-owned lenders, and specialized aviation finance companies. When evaluating providers, borrowers typically consider capital strength, aviation expertise, underwriting flexibility, financial stability, service standards, and available loan structures in addition to rates.

Most financing providers offer funding across a range of aircraft categories, including business jets, turboprops, and helicopters.

Yes, fractional aircraft shares can be financed, although not all financing providers offer this option. Fractional loans typically have shorter terms and lower loan-to-value ratios to align with the structure and duration of the operating agreement. First American offers financing for eligible U.S.-based fractional shares, subject to underwriting and program requirements.

Yes, aircraft used for charter operations can be financed, although commercial activity affects underwriting, structure, and credit terms. Financing providers, including First American, typically evaluate expected utilization, revenue profile, and maintenance exposure, and may differentiate between full-time charter aircraft and mixed personal and charter use when determining terms.

Aircraft financing providers generally work with high-net-worth individuals and organizations that can demonstrate strong liquidity, consistent cash flow, and overall financial strength. Underwriting standards for aircraft tend to be more comprehensive than traditional commercial lending due to large loan sizes and the cash flow burden associated with operating and maintaining an aircraft.

Key components of an aircraft loan typically include term length, amortization period, loan-to-value ratio, interest rate structure, down payment requirements, prepayment provisions, and any financial covenants.

Factors like creditworthiness, liquidity, and net worth profile, as well as the aircraft type, age, condition, and usage affect loan rates. Large, bank-owned lenders are often able to provide more competitive rates than small, independent lenders. 

Yes, many aircraft financing providers offer the option to choose a fixed- or floating-rate loan. Many large banks have interest rate risk management divisions that can help in offering interest rate swaps, caps, or collars to help hedge interest rate risk.

Aircraft loans for whole aircraft are typically 5 to 10 years, and amortization periods are typically 10 to 20 years. Fractional aircraft loans are typically 3 to 5 years with amortization periods up to 15 years. Term lengths are dependent on factors like the age of the aircraft and the profile of the borrower, with newer aircraft and highly creditworthy borrowers able to qualify for longer term lengths. The amortization period, the schedule used to calculate monthly payments, is often longer than the term of the loan, leaving a balloon payment at the end of the term. Amortization periods are determined by aircraft usage, the credit strength of the borrower, and the age, make, and model of the asset. Older assets, smaller cabins, and more heavily utilized aircraft depreciate faster and therefore have shorter amortization periods.

Generally, LTV ranges from about 70% for older, pre-owned aircraft to up to 85% for fractional shares and up to 90% for new whole aircraft. Sometimes used interchangeably with “advance rate,” LTV is the loan balance divided by the appraised fair market value of the asset.

Aircraft financing typically includes closing or origination fees, title and escrow fees, appraisal or valuation costs, and legal documentation fees, including both borrower and lender transaction counsel as well as FAA counsel filing the security agreement.

Yes, cash‑out financing—sometimes referred to as a reimbursement loan—can be used when an aircraft is purchased with cash and financing is arranged afterward. This approach is often chosen when there is not enough time to secure financing before the transaction, or when additional liquidity is desired after paying cash. Financing providers typically offer this option within a fixed period following the original purchase. To qualify, the transaction must have an approved title and proper escrow handling to ensure a clear FAA chain of title.

When an aircraft loan reaches maturity, most loans offer the option to refinance the remaining balance with the same financing provider or a new financing provider (subject to approval), pay off the balance, or sell or trade the aircraft and use the proceeds to fully or partially satisfy the outstanding loan. In many cases, the balloon is refinanced at maturity. Refinancing can help secure a new rate, modify the amortization schedule, or adjust the overall loan structure to better align with their current financial or operational needs.

When registering a financed aircraft, the FAA must receive documents proving ownership and any lender’s security interest. The FAA registration and lien recording process includes the following:

• FAA Bill of Sale
• FAA Registration Application
• Aircraft Security Agreement
• LLC Statement in Support of Registration or Affidavit of Citizenship

A lender will require financial statements, tax returns, and evidence of liquidity. Documentation requirements will vary based on the lender and whether the buyer is an individual or an organization. 

Generally, an individual can expect to provide:

• A personal financial statement showing net worth
• Recent tax returns and K-1 statements 
• Investment statements to qualify liquid assets

An organization can expect to provide:

• Recent CPA-prepared year-end financial statements
• Business tax returns
• Documentation of the organization’s ownership structure and debt structure
• Accounts receivable and accounts payable aging reports

A vendor financing program allows vendors to offer payment options through a lender, enabling customers to spread costs over time instead of paying upfront. The vendor introduces financing as part of the sales process, and approved transactions are funded by the lender.

Vendor financing programs are commonly used by OEMs, manufacturers, distributors, and solution providers that sell equipment, software, or bundled offerings. They can be especially valuable for higher-dollar, multi-phase, or subscription-based projects, as well as equipment that is refreshed frequently or becomes obsolete quickly.

Vendor financing programs can include equipment, software, implementation, deployment, installation, training, maintenance, and other project-related services. Bundling these costs into a single agreement can help simplify purchasing and reduce upfront barriers for customers.

For vendors, offering payment options can help increase close rates, protect margins, and support larger deal sizes. For customers, vendor financing can help reduce upfront costs, create predictable payments, and align expenses with project timelines and expected value.

Vendor financing helps reduce upfront cash constraints by spreading payments over time—helping customers move forward with broader solutions. This may support additional products, services, or phased rollouts that align with long-term objectives.

By giving customers a way to spread costs over time instead of reducing their price, vendors can make their solutions more accessible to customers while differentiating themselves in the market. 

Requirements typically include a vendor agreement, alignment on eligible products and services, and a defined process for submitting transactions. First American vendor financing programs also have specific qualification criteria, including minimum revenue thresholds and minimum average transaction sizes.

Vendors typically find that payment solutions are most effective when introduced to customers early as a standard option rather than a last-minute alternative. First American supports vendors with tools, training, and program structures designed to integrate smoothly into existing sales workflows.

Vendor financing programs can be offered under the vendor’s brand, co-branded with the financing provider, or branded directly by the financing provider. First American supports multiple branding approaches so vendors can choose the structure that best fits their go-to-market strategy and customer experience.

Vendor payment timing is based on the transaction structure and invoicing requirements. Funding approaches can be aligned to support vendor cash flow while meeting customer project timelines.

Vendors work with a dedicated Program Manager who serves as a single point of contact. The Program Manager supports the Vendor program setup, sales alignment, transaction execution, and ongoing program optimization.

First American combines dedicated program management, flexible branding options, and scalable transaction support. Vendors can integrate financing into their sales process while maintaining control of the customer relationship and delivering flexible payment options that support a wide range of transaction sizes and project types.