Advantages of obtaining marine finance

There are a number of reasons why obtaining marine finance is advantageous for potential vessel buyers, however the primary reasons why marine finance is sought, is due to the level of financial freedom and flexibility the purchaser has through obtaining an effective finance plan. By committing to a marine finance plan, the vessel buyer will pay for the vessel over a specified period at favorable interest rates as set by the finance company. When seeking marine finance it is highly advised to consult with an impartial yacht broker or professional consultancy firm to assist you in finding the most beneficial finance plan.

Benefits of marine finance

Marine finance enables those who wish to purchase a ship or yacht to do so without having the full amount of money upfront to buy it. By adopting a beneficial marine finance plan, individuals and companies alike can purchase their desired vessels without having to wait several years to save up, instead they can have the boat and operate it as they see fit while paying it on a monthly basis.

Additionally, prospective buyers and companies are able to expand their operations through buying new vessels without imposing on them the necessity to have the total capital available at the time of purchase.

There are many reasons why obtaining maritime finance is a favored solution when compared to simply buying a vessel outright, some of these reasons are explored below.

  • Financial flexibility and freedom – This is one of the primary reasons for obtaining marine finance. Marine finance will enable individuals and companies to save money while also enabling them to grow their capital each month enabling them to continue their operations while paying for the vessel.
  • Tax benefits – Many jurisdictions will provide advantageous tax breaks for those engaging in a marine finance plan. Although the tax benefits will vary according to the country, this is a favored reason for individuals and companies to use a marine finance plan to purchase a vessel.
  • Business opportunities – Marine finance provides individuals buyers and companies the opportunity to expand their business and operations through purchasing a number of vessels to support their business operations.
  • Financing plan – There are numerous advantages provided through both conventional and standard financing plans provided the plan you adopt will ultimately meet your long-term business and personal needs.
  • Credit rating – Through meeting your monthly repayments as stipulated by the terms and conditions of your marine finance plan, you can enhance your credit rating and improve your credit history. This ultimately means that you will improve your financial position to obtain further financing.

By paying monthly or as stipulated by the marine finance plan, vessel buyers are able to continue with their daily operations and activities without a great deal of disruption. If it was necessary for all buyers to save up the total sum of money in advance of buying a vessel this would be highly detrimental to both the buyer and the yacht trading industry as fewer people and companies would purchase boats.