Investing in a drone, especially a high-end model for professional or commercial use, can be a big expense—and drone financing can help cover that expense.
From aerial photography and mapping to surveillance and inspections, drones serve a wide range of applications, and financing is one way you can get the drone you need.
The DJI Inspire 3 | Credit: DJI
Drone financing may be particularly attractive for those looking to buy higher-priced drones or specialized equipment that may require additional accessories, like cameras, sensors, or software for data analysis.
Financing can allow you to make manageable monthly payments instead of paying all at once, letting you invest in the latest technology while protecting your cash flow for other expenses.
In this article, we’ll cover the types of drone financing, how to get drone financing, the different types of financing options out there, and more. Let’s dive in.
Section 1: Can You Finance a Drone?
Yes, you can finance a drone.
Whether you are an individual looking to purchase a drone for personal use or a business seeking drones for commercial applications, there are several financing options out there.
Personal drone financing is like financing any other personal asset.
In contrast, commercial drone financing is tailored for businesses that use drones for work like aerial surveying, agriculture, or filmmaking operations. The availability of financing means that you don’t have to make a large upfront payment and can instead manage the cost over time.
Section 2: Types of Drone Financing
When financing drones, multiple options are available depending on whether you plan to employ the drone commercially or for personal use.
Commercial Drone Financing
Businesses using drones for commercial applications like surveying, agriculture, or media production can use specialized financing for commercial operations.
Commercial drone financing often includes flexible repayment terms and may cater to industries with seasonal or project-based income. These loans are typically available through finance companies that understand the specific needs of commercial drone operators. Options can include extended terms and lower monthly payments to help manage cash flow.
Commercial Drone Leasing
Leasing a commercial drone can be a cost-effective way for businesses to utilize high-end equipment without the upfront purchase.
Drone leasing allows businesses to access the latest technology while making monthly payments for a set period. At the end of the lease term, there’s often an option to purchase the drone for a residual price or return it and upgrade to newer models.
Leasing can be particularly attractive for companies in fast-changing industries where drone technology constantly evolves.
Consumer Drone Financing
Consumer drone financing options are available for individuals looking to finance a drone for personal use.
Personal loans from banks or finance companies can be used to spread the cost of the drone over time, making it more affordable.
Consumer loans typically require a good credit score and are repaid over a fixed period, usually with interest. Consumer financing can also be available through retailers or manufacturers, such as DJI, offering installment payment plans directly to consumers.
Flyability’s Elios 3 | Credit: Flyability
Section 3: How to Qualify for Drone Financing
Qualifying for drone financing depends primarily on two key factors:
- Your credit score
- For businesses, your amount of time in operation.
Lenders will evaluate personal and business credit to determine eligibility and the financing terms.
Credit Score
As with any loan, your credit score is one of the most important factors for drone financing.
Both individuals and businesses with higher credit scores are more likely to receive better financing terms, such as lower interest rates and longer repayment periods.
For personal drone financing, a strong personal credit score is essential.
For businesses, lenders will review the company’s credit history, which can influence the approval process. Businesses with established credit histories are likely to have more favorable terms than newer businesses with limited credit.
Time in business (for Commercial Financing)
Lenders will also consider the length of your business’s existence for commercial drone financing. Typically, lenders view businesses that have operated for at least two years more favorably.
A longer business duration shows stability and reduces the perceived risk of financing high-value equipment like drones. Startups or newer businesses may face stricter qualification criteria, such as higher down payments or credit scores. However, alternative financing options may be available.
Documentation
Lenders will typically require specific documentation to verify your financial situation.
- For personal drone financing, this may include proof of income, such as recent pay stubs or tax returns.
- For businesses, documentation could include financial statements, tax returns, and bank statements.
These documents help the lender qualify your ability to repay the loan. They may also be used to determine the loan amount and terms.
Down payment
Sometimes, a down payment may be required to secure drone financing. This is especially true for high-value drones, individuals, or businesses with lower credit scores.
A larger down payment reduces the loan amount, lowers monthly payments, and potentially improves the terms the lender offers. It’s important to understand the down payment requirements early in the financing process so that you can plan accordingly.
By focusing on credit score and time in business, individuals and companies can better prepare for drone financing and position themselves for the most favorable terms.
Section 4: Terms and Structures
Drone financing terms can vary depending on whether you’re seeking consumer or commercial financing.
Typically, consumer and commercial drone financing options offer fixed installment plans, where borrowers make regular monthly payments over a set period, often between 12 and 60 months.
These fixed payments provide stability and predictability, making it easier to budget for purchasing a drone.
More flexible payment structures may be available for businesses, especially those using drones in industries like agriculture or seasonal work. In addition to standard installment plans, businesses may qualify for:
- Deferred payments. Some lenders offer deferred payment options, allowing businesses to delay payments for a certain period. This can be especially beneficial if your business expects future revenue but needs the drone immediately to start operations.
- Seasonal payments. For businesses with fluctuating or seasonal income, lenders may offer repayment schedules that align with your business’s cash flow. For example, businesses involved in agriculture using drones for farming may benefit from quarterly, semi-annual, or annual payments, which match income cycles and provide flexibility during off-seasons.
These tailored options help ensure businesses can choose terms that suit their operational and financial needs while maintaining access to essential drone technology.
The Freefly Alta X | Credit: Freefly
Section 5: The Application Process
Applying for drone financing is a simple process and can be done online in most cases.
Here’s a step-by-step guide to help you apply for drone financing:
- Complete the application. Begin by filling out an online application with basic details about your personal or business finances. This typically includes your income, credit history, and the amount you want to finance.
- Submit required documents. After applying, lenders may request additional financial documentation to verify your ability to repay the loan. Commonly requested documents include bank statements, tax returns, or quotes from the drone dealer, particularly if you’re financing a commercial drone.
- Review financing terms. Once your application is reviewed and approved, the lender will present the financing terms. This will include the loan amount, interest rates, and repayment schedule. Take the time to review the terms to ensure they meet your needs.
- Sign and finalize the agreement. After agreeing to the terms, you must sign the financing documents. Once the paperwork is completed, your financing will be finalized, and the lender will proceed with disbursing the funds to the drone dealer or manufacturer, completing the purchase process.
Section 6: The Funding Process
The funding process for drone financing typically involves the following steps:
- Document signing. After your financing is approved, you will sign the financing agreement that outlines all the terms, including the repayment schedule, interest rate, and any other conditions.
- Part 107 certification (if required).* For commercial drone operators, obtaining a Part 107 certification may be necessary before the funds are disbursed. This certification ensures you are legally authorized to operate drones for business purposes. If needed, you can take preparation classes to pass the certification exam, and links to these resources may be provided during the financing process.
- Verbal verification. Before the disbursement of funds, the lender may conduct a verbal verification to confirm the terms of the agreement and ensure that all conditions, including certification and documentation, are in place. This step acts as a final approval before releasing the funds.
- Disbursement of funds. Once all conditions have been met and verbal verification is completed, the lender will disburse the funds directly to the drone dealer or manufacturer, allowing you to take ownership of the drone and complete the purchase.
*Need help preparing for the Part 107 test? Learn how Drone Pilot Ground School can help you get ready.
Section 7: Where to Get Drone Financing
Drone financing options depend on whether you’re looking for commercial or consumer financing. Below is a breakdown of the best sources for each.
Commercial Drone Financing
- BNC Finance. BNC Finance specializes in commercial drone financing, providing tailored solutions for startups and established businesses. They offer drone financing and leasing options for various drone models, including DJI drones. BNC Finance also provides flexible payment terms to suit the specific needs of your business, such as seasonal payments, annual payments, and deferred payment plans, making it easier for businesses with fluctuating or seasonal revenue, such as those in agriculture or surveying, to manage payments. Their expertise in the commercial drone space makes them an ideal option for businesses looking for financing that accommodates their operational needs.
- Traditional Banks: Traditional banks can offer business loans that may be used to purchase drones. However, these loans often come with stringent credit requirements and certain restrictions, particularly for newer businesses. Many banks do not typically finance companies that have operated for less than two years, making them a viable option mainly for established businesses with a proven financial track record. Startups and newer companies may need to explore alternative financing options if they do not meet these criteria.
Consumer Drone Financing
- Online Lenders (e.g., Affirm): For individuals looking to finance consumer drones, such as DJI drones, online lenders like Affirm provide flexible installment plans. Affirm offers straightforward financing options with more lenient credit requirements than traditional lenders, making it an accessible choice for consumers who wish to spread the cost of a drone over time. This can be a quick and convenient way to finance a personal drone purchase, allowing consumers to break up the cost into manageable monthly payments without going through the lengthy process of securing a traditional loan.
By leveraging these financing options, commercial businesses and individual consumers can find the right solution for acquiring the drone equipment they need.
