Finance

Financing Your Vessel

Having a custom-built boat designed to meet your specific requirements can be a thrilling prospect. It enables you to acquire a vessel that meets all your needs and beyond. However, it’s no secret that commissioning a custom yacht involves a considerable financial investment. The numerous payments necessary to complete your purchase can pose a daunting challenge, especially if they must be made all at once. This financial burden may even discourage you from pursuing your dream boat. Thankfully, this no longer has to be the situation with the availability of boat finance options.

At Nor’Sea Yachts, we fully acknowledge this financial reality, which is why we extend the opportunity for prospective boat owners to access appropriate financial solutions. Our goal is to ensure that acquiring your dream yacht doesn’t put you in financial hardship. By offering financing options, we empower you to repay the cost of your boat at a pace that suits your financial circumstances, ensuring you enjoy your yacht without the associated financial stress. To talk to one of our broker team members visit our website.

What Is a Boat Finance?

This arrangement involves a lender agreeing to finance either the entirety or a majority of the boat’s purchase price. The purpose of this arrangement is to ensure the borrower isn’t obliged to use up their available cash reserves for the purchase. In exchange, the borrower agrees to repay the loan over an agreed period.

In addition to the principal amount, the borrower is also required to pay interest on the loan. This interest represents the lender’s profit for providing the funds to the borrower. As soon as the full loan amount, which includes both the interest and the principal sum, is repaid in full, the agreement is concluded.

Why Boat Finance?

Opting for boat finance comes with an array of benefits. Here are some key advantages:

  • Affordability: Boat finance can make owning a boat more affordable. Rather than paying the entire cost up front, you can spread the cost over a period, making it easier to manage.
  • Cash Flow Management: With a boat loan, your cash flow isn’t significantly affected. You can maintain your financial stability by preserving your savings for other necessary expenses or emergencies.
  • Flexible Repayment Options: Boat finance providers often offer a variety of repayment plans, enabling you to select a schedule that aligns with your financial situation.
  • Easy Access to Your Dream Boat: Boat finance could provide you with immediate access to your dream boat without waiting for years to save up the full purchase price.
  • Potential for Higher Value Boat: Financing might enable you to afford a higher value boat than you could by saving and paying all at once.

 

Easy Access to Funds

The first advantage that comes with choosing boat finance is that you enjoy easy access to cash. In this case, you do not need to worry about having the money that you need to make the necessary purchase. You can now trust that the lender will deliver while you work your way towards repayment after.

Convenient Rate Calculator

To further simplify your boat financing journey, we offer an easy-to-use rate calculator. This handy tool enables you to determine your potential repayment costs quickly and with little effort.

The calculator’s user-friendly interface allows you to input your desired loan amount, the repayment term, and the interest rate, providing you with an instant and accurate estimate of your monthly repayments. This clear and straightforward breakdown can help you plan your budget efficiently, ensuring your boat finance agreement aligns with your financial circumstances.

Our rate calculator takes the guesswork out of the equation, giving you a clear understanding of your financial commitment before you proceed. It’s a valuable resource for understanding and managing your financial obligation, helping to guide you towards making a well-informed decision about your boat purchase.

Remember, our team is always available to assist you if you need any help navigating the rate calculator or interpreting the results. We’re dedicated to ensuring your journey to owning your dream boat is as smooth and worry-free as possible. Go here to access the calculator to find the best rate for your boat purchase.

Available Options

There is a wide range of options that you can take advantage of if you are interested in getting yacht finance. Usually, this will depend on the status of the use of the boat. Precisely, whether you are obtaining the vehicle for commercial use or you are obtaining the vehicle for personal and recreational use.

For more information on yacht and sailboat loans follow this link. 

Unsecured Boat Loan

This type of financing option does not require you to offer any form of collateral to the lender. The loan is given based purely on your commitment to repay it. As the risk borne by the lender is considerably higher with unsecured loans, they typically carry a higher interest rate.

Despite this, the loan comes with a flexible repayment plan. You can have up to seven years to complete the repayment, and you may receive up to 100% of the total boat purchase price as a loan.

Secured Boat Options

This type of financing necessitates that you provide some form of security, or collateral, for the loan. In most instances, the boat itself serves as the collateral. Since this type of loan carries less risk for the lender due to the security provided, you can benefit from a more competitive interest rate and potentially borrow a larger amount.

Just like the unsecured option, secured boat finance also provides a flexible repayment period, allowing up to seven years to repay the loan. Upon completion of payments, the financing agreement concludes.

Business Loan Options

If you intend to use the boat for commercial purposes, you can secure boat finance under a different set of terms. This can include a chattel mortgage option where you enter a mortgage agreement with the lender, using the boat as security for the loan. Another possibility is a commercial hire purchase option, where you gain possession of the boat and eventually acquire ownership after fulfilling the repayment obligations. More information.

Should you have any queries regarding our boat finance services, we urge you to get in touch with us. Our team is always ready to address your concerns and ensure that you receive the assistance you need. We look forward to connecting with you.