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Restoring and Improving the Flow of Commercial Boat Loans Information

Commercial Boat Loans
Considering a new vessel for your marine repair business?
Expanding your hire fleet with new boats?
Buying a charter boat?
Buyers of boats for business purposes such as charter operations, hire boats and harbour work boats have a number of specialised commercial marine finance packages available through specialised marine finance brokers.
Before considering what type of loan, first decide how you will source your marine finance deal: Finance broker, direct to finance company or approach the bank?
Which is going to offer the best deal for your major business investment?
Not all banks and finance companies offer specialist marine products and your business deserves the best deal possible.

Dealing with a Finance Broker

A finance broker with specialist marine finance expertise offers many advantages to astute business operators.

As brokers are accredited with multiple lenders, you only have to deal with the one source in order to get receive a highly competitive quote from a large selection.

Saving you a lot of time compared with doing it yourself.

The broker will handle all the details for you so you can keep working and earning while you finance deal is being arranged.

As an independent operator, the broker works for YOU, in YOUR best interests to get you the best finance package available.

What is the best commercial loan for your business?

Commercial marine finance products include:

  • Comprehensive Hire Purchase CHP
  • Leasing
  • Chattel Mortgage

They all include:

  • Fixed interest rate
  • Fixed loan term
  • Fixed residual
  • Fixed monthly repayment

Commercial finance products vary in the technical structure of the loan and the decision as to which is best for your business depends on your accounting method and how your company handles taxation. Consulting with your accountant is advised.

Boat Ownership and Possession

With each of the commercial finance products, the buyer takes possession of the vessel at the time that the sale is completed.

You get to select the boat you want, negotiate the price with seller and after purchase, you are responsible for handling boat rego, insurance costs and all maintenance and running expenses.

The buyer takes possession but the lender retains ownership of the boat under varying structures:

  • Comprehensive Hire Purchase CHP: lender hires the boat to you for fixed monthly hire rate which is effectively the repayment
  • Leasing: lender leases the boat back to you under fixed monthly rate
  • Chattel Mortgage: lender takes a mortgage over the boat and you repay the loan at fixed monthly repayment

A broker will clearly explain the details of each and guide you through the decision making process.

Follow these links to connect with a specialist marine finance broker