Updated . Educational only — not tax, legal, or lending advice. Confirm figures with your CPA, the state revenue department, and a lender before you close.
A Broker Shops the Loan. A Lender Funds It.
Jaken Aviation, the firm this calculator introduces, is a brokerage. It is not a bank and it does not fund your note. The lender is the company whose name is on the promissory note and the FAA security agreement. Confusing the two is how buyers think they have been “approved by Jaken” when they have been packaged for a lender.
What a broker is paid to do
A broker matches your file and the aircraft to lenders who will actually take that collateral, chases the paperwork, and compares offers. The broker is typically paid by the lender as a percentage of the amount financed, by you as a disclosed fee, or both. Ask which, in writing, before you apply. A fee you did not ask about is still your money.
What a direct lender does
A direct lender underwrites, funds, and usually services. You skip a middleman and you also skip anyone whose job is to check a second and third lender. That is a good trade when the first lender already fits the aircraft. It is a bad trade when that lender does not finance your category and you spend a month finding out.
Questions that tell them apart
- Who is the lender of record, and will I see their commitment letter?
- Who services the loan after closing, and where do I send payments?
- What is the broker’s compensation on this file?
- If this lender declines, how many others will see the file, and will each pull credit?
Multiple credit pulls in a short window for the same purpose are not the same as months of scattered applications. Ask the broker how they sequence them. Read pre-approval before you authorize a stack of pulls you do not need.
Questions buyers actually ask
Is the cheapest rate always the direct lender?
No. A broker can surface a lender you would not have called. Compare the APR, the fees, and the covenants, not the business card.
Can a broker lock a rate?
The lender locks the rate, if the product even has a lock. A broker’s email saying “you’re at 6.5” is not a lock.