Seaquip
Boat Finance
You can own a boat without necessarily breaking down financially or faced with a huge financial burden as relatively expensive as owning a boat can be. It is not exactly as cheap as buying other commodities. But, it is not out of reach either, just like how we own other assets like houses, cars, jets etc., you can own a boat through boat financing.
Boat finance enables you to make use of financial opportunities often provided by financial institutions to finance your boat purchase with a scheduled payback method that suits your financial capacity and income. With an opportunity like this, owning a boat might not exactly be bank-breaking anymore, boat finance gives such an advantage of realizing your dreams of owning a boat.
We at Sea Quip recommend Jade Boat Loans for all Australian marine financing
Securing boat finance
You must have checked through boat catalogues and have seen that matches your taste and need, the next step is financing the purchase. There are various channels to consider when opting for boat finance depending on flexibility and preference. The common examples are:
It is usually the best decision to meet up with a boat dealer when trying to finance a boat purchase, for several reasons. A boat dealer can offer advice about the type, specifications, and differences of different types of the boat as they have expertise within the marine business with a wealth of experience. Also, speaking with a boat dealer directly reduces the complexity of paperwork and other process associated with other means of boat financing.
The medium of financing your boat through a boat dealer allows easy transaction of obtaining a boat with a less financial burden, by getting a choice boat, and a convenient repayment plan. A boat dealer helps in giving out financing options that are suitable to the client and matches up with the specification of the boat to be purchased.
It is usually the best decision to meet up with a boat dealer when trying to finance a boat purchase, for several reasons. A boat dealer can offer advice about the type, specifications, and differences of different types of the boat as they have expertise within the marine business with a wealth of experience. Also, speaking with a boat dealer directly reduces the complexity of paperwork and other process associated with other means of boat financing.
The medium of financing your boat through a boat dealer allows easy transaction of obtaining a boat with a less financial burden, by getting a choice boat, and a convenient repayment plan. A boat dealer helps in giving out financing options that are suitable to the client and matches up with the specification of the boat to be purchased.
It is usually the best decision to meet up with a boat dealer when trying to finance a boat purchase, for several reasons. A boat dealer can offer advice about the type, specifications, and differences of different types of the boat as they have expertise within the marine business with a wealth of experience. Also, speaking with a boat dealer directly reduces the complexity of paperwork and other process associated with other means of boat financing.
The medium of financing your boat through a boat dealer allows easy transaction of obtaining a boat with a less financial burden, by getting a choice boat, and a convenient repayment plan. A boat dealer helps in giving out financing options that are suitable to the client and matches up with the specification of the boat to be purchased.
It is usually the best decision to meet up with a boat dealer when trying to finance a boat purchase, for several reasons. A boat dealer can offer advice about the type, specifications, and differences of different types of the boat as they have expertise within the marine business with a wealth of experience. Also, speaking with a boat dealer directly reduces the complexity of paperwork and other process associated with other means of boat financing.
The medium of financing your boat through a boat dealer allows easy transaction of obtaining a boat with a less financial burden, by getting a choice boat, and a convenient repayment plan. A boat dealer helps in giving out financing options that are suitable to the client and matches up with the specification of the boat to be purchased.
Banks can serve in the gap of getting your dream boat by financing the purchase. Banks stand as credit facilitator among other financial institutions. Banks offer credit facility to individuals as well as organizations. Personal loans can be obtained from banks for this purpose. Another advantage of obtaining loans from the bank is the opportunity of having a considerable low-interest rate.
Banks can also be used as a facilitator to obtain loans to purchase a boat. There is an easier process now in the modern world of completing loan applications as compared to some years back, the process of obtaining loans from banks are now easier. Banks also allow ample time for repayment, with the various repayment schedule.
A great option as well of financing your boat purchase is to work with a marine finance company in obtaining a loan. A marine finance company is designed to offer professional advice about everything that relates to marine including but not limited to boat specifications, purchase, maintenance etc. They also offer detailed financial assistance towards the purchase of a boat to their clients.
One leading advantage of using a maritime country is the idea that you can get all you want in one place, you can get quality and technical advice on boat types and purchase, and also obtain a loan to enable you to purchase your boat.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
Types of boat finance
From the different ways of securing boat financing, there are still various types of boat finance available. The commonly used ones are:
Secured loans
These are loans that are obtainable to purchase a boat, however, they require the borrower to drop collateral. A collateral is a form of asset dropped at a financial institution to serve as a guarantee for the repayment of the loan received. The collateral can be in form of assets that are valued at the same price as the loan or close to it. In the event whereby the loan is not repaid within the specified time limit, the collateral can be seized, in cases where no collateral is not given, the boat purchased can serve as collateral, if the repayment is not done within the stipulated time, the boat can be seized.
Unsecured loans
Unsecured loans are the opposite of secured loans. For this type of loan, there is no collection of collateral at the point of obtaining a loan, even the boat purchased is not used as collateral. However, it comes with greater challenges and risks, for instance, lenders offering unsecured loans give higher interest rates or other conditions than the ones for secured loans.
Mortgage loan
A mortgage loan is common among house owners, as it is commonly obtained to purchase a house. In the usage of a mortgage loan for a boat loan, it is necessary to use a house as collateral for repayment of the loan. The downside of this type of loan is the risk of losing your house if you fail to repay the loan.
Boat Financing Requirements
Some requirements have to be met to qualify for a boat loan, no matter the financial institution or lender. It might be easy for some to qualify and some may be denied. An easy indicator to know if you will qualify for a boat loan is if you qualify for a car loan, once you qualify for a car loan there are chances that you can also qualify for a boat loan. Some of the requirement taken into account when determining eligibility for boat financing are:
- Credit rating
- Debt to income ratio
- Job security
- Homeownership stability
- Net worth
It is important to consider these criteria before applying for boat financing s this will determine your eligibility for obtaining a boat loan.
When you qualify for a boat loan, there are some things to look out for. These days boat loans have longer durations that can span 10-20 years, the interest rates are low and with a low initial down-payment. However, it is the best shot for a shorter term and higher down payment, this grants you a more favourable interest rate. In the same light, larger loans have a low-interest rate, as the general rule is that the higher the loan, the lower the interest rate. It is important to consider all of these factors when applying for a loan.
Terms of Boat Finance
Similar to other types of a financing scheme, there are terms and conditions attached to obtaining boat finance. Some of these terms are highlighted here.
Interest rate
There is no fixed interest rate on boat loans, interests are calculated based on factors such as the type or class of boat to be purchased, the type of loan and the period of repayment. All of these combine to determine the interest rate that will be calculated on the obtained loan.
Repayment Terms
The repayment plan for loans is decided by the financial institution or lender. The repayment terms defer from one type of loan to the other. For example, secured loans that involve collateral comes with shorter repayment plans, whereas unsecured or mortgage loans have a longer repayment option. Apart from the general terms, there are also specific options for some loans based on the amount obtained and the duration of the loan.
Request For Down Payment
Most boat finance scheme requires you to make a form of down payment. This is in form of a lump sum that reduces the monthly repayment amount, as well as interests that will be incurred.
Using a Boat Loan Calculator
It is good to have an idea of what and how your repayment plan will look like for a boat loan. There are quite a several variables to consider when calculating repayment plan, variables like credit scores, debt ratios, net worth etc. the size of the loan obtained as well as the term is equally important. A boat loan calculator has been designed to take into account these variables, there are quite a several online boat loan calculator that will prove helpful.
Some general rules about boat loans are:
- Interest rates greatly reduce if the loan amount is higher.
- Interest rates also reduce if the loan term is shorter i.e. the loan is scheduled to be paid in a shorter time frame.
- Loan amounts that are quite high can be paid over a longer period, sometimes as high as 20 years.
- Loans often require down payment, sometimes as low as 20%. Paying a high amount for a down payment helps reduce the interest rate that will be incurred on the loan.