Boat Loans

Owning a boat is a life aspiration for a lot of people. For others, marine vessels are an essential part of their business operations. Whatever your situation, chances are you need finance.

Most individuals and especially businesses will need to seek a loan to purchase their boat or marine vessel but not everyone has the financial acumen or the time to fully explore all the options available to them. So we’ve made your voyage to boat ownership calmer with information on what loans are available and hints on sourcing the best one for your boat purchase.

Personal Boat Loans

When an individual purchases a boat purely for personal use – recreation, sport or enjoyment – the choice of personal loans includes:

  • Secured Boat Loan: the lender uses the boat as security against the loan and you will have a fixed monthly payment over the fixed loan term.
  • Unsecured Personal Loan: if no security is available, an unsecured loan may be offered. The interest rate will be higher than for a secured loan.

Personal boat loans are available for a wide range of new and used boats, jet skis and other marine vessels, subject to individual lender guidelines.

Marine Vessel Finance – Business Boat Loans

For businesses that operate in the marine environment – boat hire, salvage, marina construction, rescue, tourism, research, boat repair and maintenance, sailing schools etc – a range of commercial finance products are available to finance your vessel purchase.

  • Commercial Hire Purchase (CHP)
  • Boat Leasing
  • Chattel Mortgage

The differences are in the treatment of GST, accounting method, tax deductibility and depreciation so it is strongly advise that you consult with your accountant as to which is best for your business.

Each features a fixed interest rate, fixed loan term, fixed monthly payment and the option of including a balloon, residual or buyback amount.

Boat Loan Calculators

Boat loan calculators are usually made available on the websites of banks and lenders that offer boat loans and marine finance. They follow similar operating processes and set out like most online forms with fields to be filled with your data. In using a calculator to the best effect, you need to be fully aware of its capabilities, functionalities and limitations. Read the disclaimer and other terms and conditions for that calculator carefully so you are making decisions based on the right premises. If you would like to be directed to a boat loan calculator, please contact us.

Boat Finance Brokers

Some banks offer boat loans and there are specialist marine finance companies. But to ensure you have the cheapest loan available to you, using a finance broker can be extremely useful. A broker that specialises in boat loans has access to many banks and lenders, including some industry-only sources so they can easily compare a wide range of options and present you with the best deal that suits your individual requirements.

We know finance brokers that specialise in boat loans and marine finance. If you would like their contact details, please get in touch with us.