Two Routes to Commercial Vessel Finance
When you purchase a new or used commercial vessel - whether a workboat, patrol craft, fishing vessel or passenger ferry - you will typically be presented with a finance proposal by the selling yard or builder. This is convenient, but convenience and value don't always coincide. Understanding the difference between builder-arranged finance and independent broker finance is important before you commit.
Vessel Builder / Yard Finance
- Single lender relationship
- Finance structured to suit the sale
- Convenient but limited comparison
- Rate not benchmarked against market
- Builder earns commission from lender
- You may pay a premium for simplicity
Independent Finance Broker
- Whole-of-market access (8+ lenders)
- Finance structured to suit your business
- Full rate comparison before commitment
- Best available rate sourced for your profile
- Broker has a duty to act in your interest
- Separates purchase and finance negotiation
How Vessel Builder Finance Works
Most commercial vessel builders and yards maintain an arrangement with one or two preferred finance providers - often a clearing bank asset finance arm or a specialist marine lender. When you express interest in a vessel, the yard will pass your details to their finance partner, who will return with a proposal. This is presented as a seamless, convenient package alongside the vessel sale.
There is nothing wrong with this arrangement per se, but three structural issues work against the buyer:
- Single lender: You are shown one finance option, not the best one. If you don't know the market rate, you can't tell whether you're being offered a good deal.
- Incentive misalignment: The yard earns a commission (or a preferred pricing arrangement) from their finance partner. This incentivises them to close the finance deal, not to find you the cheapest rate.
- Bundled negotiation: When vessel price and finance are negotiated together, the seller has more levers. A high margin on the vessel can be offset with an apparently attractive finance rate, or vice versa.
How an Independent Marine Finance Broker Works
An independent broker like Doulton Bridging Finance operates across the whole commercial vessel finance market - accessing Close Brothers, Lombard, United Trust Bank, Shawbrook, Aldermore, Together, Rankin, Funding Circle and other specialist lenders simultaneously. We are FCA-authorised (No. 814533) and are required by regulation to act in your interest, not the lender's.
When you engage us, we:
- 1Assess your business profile and finance requirement
- 2Identify the lenders most likely to approve and offer competitive terms
- 3Present your case in its best light to multiple lenders
- 4Compare all returned terms and structure a recommendation
- 5Handle documentation and manage the transaction through to drawdown
If the builder's finance happens to be the best deal - which occasionally occurs - we'll tell you. Transparency is central to how we work.
Rate Comparison: Builder Finance vs Broker Market
| Criterion | Vessel Builder Finance | Independent Broker |
|---|---|---|
| Number of lenders compared | 1–2 | 8+ |
| Rate benchmarked vs market | No | Yes |
| Regulatory duty to you | No (acts for yard) | Yes (FCA authorised) |
| Purchase price separation | Often bundled | Fully separate |
| Flexibility on vessel type | Builder's stock only | Any vessel / any seller |
| Structure options | HP (typically) | HP, lease, refinance, balloon |
| Typical APR (strong profile) | Often 1–2% above market | Best available for your profile |
When Builder Finance Can Be Competitive
There are situations where a builder's finance proposal can represent good value:
- The builder has a deep volume relationship with a major lender and passes on a preferred rate
- The vessel is new-build and the builder's lender offers stage-payment facilities the open market doesn't
- The builder is offering a subsidised rate as a sales incentive (common in the recreational market; rarer in commercial)
In all of these cases, the right approach is to take the builder's proposal and have an independent broker benchmark it against the whole market. If the builder's deal wins, you proceed with confidence. If the broker finds better terms, you save money.