boat financing / loan / etc

[Nuci]

Hi
I am working setting up a boat renovation project in Spain

I have the opportunity of buying a sailyacht that has potential, and already have 50.000 € in materials.
I have another 50.000 € for renovation

However the initial purchase I would like to get some help with: 70.000 € for the vessel, and 10.000 for initial costs.


Do you have experience in boat financing?
What would you advice me?

I do not have a fixed monthly income. My revenue will come from selling the vessel in 6 to 12 months.
I am in the process of selling an appartment. I wish it had sold already, then I would not need a loan.

I currently have no special banking relationship in my country of origin, and hope to find a specialised company or funder who knows more about this subject.

thanks for your comments and advice
M

[Shrew]

While the bank will want to use the vessel as collateral, they will expect to see an income and a means to repay the loan on top of that. In addition, expect the bank to only loan a percentage of the vessels value. 75% would be a minimum IMHO.

[TrentePieds]

Bang on, Shrew :-)!

Would that people were more conversant with "the 5 Cs of Lending": Capital, Capacity, Collateral, Character and Conditions (of the market).

By post #1 I would surmise that all but the most incautious bankers/lenders would reserve their funds for applicants that score higher on these parameters than the OP appears able to do.

Ultimately, that works to the applicant's benefit :-)!

TrentePieds

[goboatingnow]

It will be impossible to get financing in Spain unless you are a resident of reasonable “ standing “ after that it still won’t be easy.

Marine financing vehicle are very undeveloped. You have a conventional “ chattel “ mortgages but these are quite a pain to get

Then you have lease companies but most marine leasing has left the market.

Beyond the asset you will have to offer up personal guarantees etc.


Given your circumstances I wouldn’t even bother trying its deeply frustrating

[5BTM]

In the States, even pawnbrokers will not accept boats as collateral.

The best place to try would be where you are known, and ideally own some immovable property that has some equity.

Otherwise, I wouldn't bother trying.

[JC Reefer]

You’d need to pull something other then a boat loan. Hard money loan or HELOC (if you own property). Or something else along these lines.

At the end of the day, lenders need to backup their investment. You’ll always need some percent of the total amount that you expect to spend.

Skin in the game is how lenders know you won’t run off with their funds and the collateral is what they take if you do default.

[BostonSailer]

You can try this company, https://www.lightstream.com/boat-loan

Worked for me.

Chris

[letsgetsailing3]

Nobody other than a relative is going to lend money under these conditions.

[valhalla360]

Based on your description:
- The boat has negligible value without the repairs. Banks don't like to lend more than a boat is worth.
- You have no reliable, verifiable income. Repossession, is a last resort. Banks want you to pay the loan off.
- Boats aren't great collateral as they can be easily moved out of the country where it's harder to repossess.
- Unless you are very experienced, flipping boats to make money is usually a loosing proposition. If you are that experienced, you probably would already understand how the financing works.

Since you asked for advice: If you can get out of this deal without losing a lot of money, get out of it now.