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Buying a new boat or marine equipment is not a cheap investment, so it’s common for business owners to find themselves in need of financing.
Not only do you need to budget for the cost of the boat, but you also have to factor in other expenses, such as transport, storage, licensing, and ongoing maintenance. Getting a boat loan makes it easier to purchase the boat you want and get on with your business.
Going to the bank is the obvious first choice for a lot of entrepreneurs in need of new boat financing, but it’s not always possible to get a traditional loan. If you need to buy a new boat for your business but are struggling to get a bank loan, we can help you at PSA Capital Investments.
We offer affordable and flexible loans to finance the purchase of a new or used boat, as well as marine equipment. Here’s everything you need to know about getting marine financing with PSA, including what it involves, what kinds of boats you can buy, and the benefits of a private boat loan.
Boat Financing for Australian Businesses
We offer boat financing to a wide range of Australian businesses, including tourism business operators, transport and chartering companies, commercial fishing, marine construction, and others. Whether you need to buy a commercial, recreational, or specialised boat, we can help.
Some of the different types of boats we finance include luxury yachts, tug boats, dinghies, jet skis, houseboats, trawlers, and walkarounds. It doesn’t matter whether you’re buying a new or used boat; we offer both new and used boat financing.
We can also provide a loan to buy marine equipment for your business, like a boat motor or docking equipment.
When to Consider Getting a Boat Loan
If one or more of the following applies to you, then it might be time to get a boat loan for your business.
- You cannot buy a boat or marine equipment without impacting your cash flow and business operations. A boat loan lets you buy what you need while still leaving you with enough cash to run your business.
- You need to expand your marine business (e.g. expanding your fleet or buying additional equipment). Financial leveraging comes with risks, but it can help you grow and expand your business. PSA’s affordable boat loan rates reduce risk for businesses by making it easier to repay and exit quickly.
- You’re just getting into the marine industry and need initial capital financing to buy your first boat.
- You need to buy a new boat, but have trouble getting financing from your bank. A private lender can provide alternative financing.
- You have an aging vessel that’s becoming expensive to run and maintain. We can finance the purchase of a new boat with better fuel efficiency, improved safety features, and better reliability.
How Much Does a Boat Loan Cost?
How much a boat loan costs varies depending on a number of factors, including your credit history, the health of your business, and the state of the vessel being financed. The loan structure (down payment, repayment period, and payment schedule) also affects the cost of a boat loan.
At PSA, our goal is to help businesses recover and grow, hence our focus on affordable loans. We make it as easy as possible for businesses to make repayments on time and exit the loan arrangement. In addition to fair rates, another way we make our loans cheaper is by not charging an exit fee (most private lenders charge a 4-5% fee) and charging a lower disbursement fee.
What to Expect When Applying for a Boat Loan
The process of applying for a boat loan can be daunting particularly for first time borrowers, but we’ll guide you through every step of it.
The most important part is the due diligence process. Carrying out due diligence ensures we only lend to businesses that are able to repay. It involves assessing your credit history, analysing your business performance, and carrying out a risk assessment.
Expect requests for personal and business financial documents, so it’s a good idea to have them on hand to make the process smoother.
As part of the loan application process, we’ll ask for collateral to secure the boat loan. The boat itself can act as loan security, or you can secure the loan against other assets or capital. We’ll assess the value of the collateral to ensure it is adequate to secure the loan.
Why a Private Boat Loan May Be Better Than a Bank Loan
The biggest advantage of getting a private boat loan instead of a traditional bank loan is flexibility. Private lenders are able to offer much more flexible terms that are tailored to your specific business situation, whether you’re seeking short-term financing or a longer-term arrangement.
A great example of this is Collateral Requirements. While a bank might only consider the vessel itself as collateral, a private lender can consider alternative security arrangements, allowing you to potentially access more financing.
A private lender may also have a faster loan approval process, which allows businesses to respond quickly to market and business situations such as growing demand, increased competition, or the need for more equipment.
Get a Boat Loan With PSA
Ready to launch or grow your marine business? At PSA, we offer personalised boat financing with fair, flexible, and affordable terms that make repayments easy.
Get in touch with us at (03) 9847 7689 to enjoy easy boat financing and grow your business.
Disclaimer: The information contained in this document is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs.
