Whether you are purchasing your first yacht or your third, or are currently a yacht owner in need of refinancing or an upgrade, our yacht financing loan programs are structured to provide you with the most attractive options in the industry. Even if you are somewhat credit challenged, we can arrange loans that meet your requirements.
How Asset Financing Works for Yachts
If you’ve ever taken out a mortgage on a home or a loan on a car, then you are already familiar with how asset-based financing works. In simple terms, the item purchased is used as debt collateral for asset-based financing.
This is the same concept behind asset-based yacht financing. The vessel you acquire financing for stands as the collateral for the loan amount, giving the lender the right to repossess the yacht if you default on your payments.
Benefits of Asset-Based Financing for Yachts
Asset-based financing is a great loan solution when it comes to yacht financing because the yacht is the actual loan collateral, It can be the case that banks and other institutional lenders view yacht loans as a higher risk than other types of loans. With asset-based yacht financing, however, financing is often faster and easier to qualify for than an unsecured loan because the vessel itself provides the loan security should you default on your loan.