Captive Lender vs Independent Broker - The Key Differences
| Factor | Captive Lender | Independent Broker (DBF) |
|---|---|---|
| Market access | Single lender only | 130+ lenders compared |
| Rate negotiation | Limited - one offer | Competitive tension between lenders |
| Aircraft type flexibility | May favour their preferred assets | Whole market across all types |
| Structural flexibility | Standard products only | HP, lease, SPV, PDP, refinance |
| Commercial expertise | Varies by lender | Specialist aviation finance team |
| AOC knowledge | Varies significantly | Deep understanding of UK CAA requirements |
| Cost to you | May include arrangement fee | Broker fee paid by lender on completion |
When a Captive Lender May Be the Right Choice
Captive or direct lenders can occasionally be the right choice - particularly for operators with strong existing relationships with a specific bank, or where a manufacturer's finance arm is offering genuinely exceptional terms tied to a new aircraft order. However, even in these cases, using a broker to validate whether the captive rate is genuinely competitive costs nothing and provides important reassurance.
Why Whole-of-Market Access Matters for Commercial Aviation Finance
Commercial aviation finance is a specialist, relationship-driven market. Lender appetite changes regularly - a bank that was highly competitive for ATR finance six months ago may have filled its aviation book, while a challenger lender may have launched a new commercial aviation product. Only a whole-of-market broker has real-time visibility of which lenders are active and competitive for your specific requirement.
At Doulton Bridging Finance we speak to the commercial aviation desks at all major lenders regularly. We know when they are open for business and what their current pricing looks like before we submit your case. This intelligence has real value for commercial operators with large, complex finance requirements.