Yacht
Financing


Assets America® offers luxury yacht financing for yachts, super yachts and mega yachts starting at $10 million and beyond! Yachts are watercraft used for sports, commercial use (chartering) or pleasure (including fishing) with a minimum length of 50 feet.  Super-yachts are large, expensive, professionally-crewed yachts, informally sized at 79 feet or greater, although the dividing line is somewhat subjective. Finally, mega-yachts are the biggest and most expensive yachts, starting from 164 feet and beyond.

Video: Benetti Super Yacht Tour

Yacht Valuation

Yachts are configured as sailing or power vessels, although many sailing yachts have motors as a backup. While yachts can be quite large, however, they are dwarfed by commercial maritime vessels like oil tankers, ocean cruise liners, and cargo ships. Yachts can yield income through chartering, which can figure into the process of obtaining yacht loans. Super-yacht and mega-yacht designs also reflect the personal tastes of their owners. These specializations affect the yacht’s value for financing purposes.

Many factors figure into the evaluation of a luxury yacht, for example:

  • Purpose of the vessel
  • Size
  • Number of engines
  • Sleeping accommodations
  • Crew size (if any)
  • Chartering income (if applicable)
  • Suitability for different sea conditions
  • Fuel consumption
  • New versus used
  • Legal jurisdiction of the lender, the borrower, and the yacht itself

Take note that international considerations can complicate the process. In other words, financing must account for different laws and cross-border tax implications.

Yacht Financing from Assets America®

If you want to purchase a yacht, or build your own newbuild, or lease a yacht, check out our yacht finance packages. We can arrange yacht loans that will meet your requirements, even if you are somewhat credit challenged. Our yacht loans start at $10 million. Don’t postpone purchasing the yacht you deserve. Rather, call our offices today at (206) 622-3000, or simply fill out the below form for a prompt response!

Apply For Yacht Financing

 
 

A superyacht at night, purchased through yacht financing

A beautiful mega yacht at dusk, bought with a mega yacht loan

Yacht Survey

For yacht financing and insurance purposes, a yacht, superyacht or megayacht must undergo a survey, a procedure similar to a home inspection. The three types of yacht surveys are:

  • Insurance survey: This type of survey is for renewal of insurance policies, not for acquisition. It is a light inspection that tries to identify outstanding issues.
  • In-shore and coastal survey: This is the most common survey and is a good choice for many yacht purchases. It includes a full equipment listing, a confirmation of the hull number (much like a car’s VIN), complete system testing, and an out-of-water check of running gear, hull, and bottom paint.
  • Offshore survey: This is the most time-consuming and comprehensive survey, appropriate for ocean-going yachts. It includes the in-shore and coastal survey, but also ultrasonic tests, hull moisture tests, heat-sensing scans, engine manifold tests, and more.

A super yacht with two helicopters and a multi-million dollar super yacht mortgage

Yacht-Building Contracts

The individual nature of luxury yachts means that yacht-building contracts are not standardized the way that oil tanker contracts are standardized. The yacht building yard will enumerate all the luxury yacht buyer’s individual requirements in the contract, which will probably go through several drafts before finalization.

The contract structure reflects the obligations of the builder and the buyer. It will also include warranties, tax provisions, and often, confidentiality clauses, as the owner of a mega yacht often wants to keep a low profile. Ideally, the shipyard delivers to the buyer the yacht exactly as specified, and the buyer receives a clean title upon payment of the purchase price.

Financing a yacht requires a yacht mortgage lender and broker

Yacht Registration

Yachts must be registered in a country, but not necessarily in the country of the seller or the buyer. Registration is fairly easy as long as the yacht meets certain criteria, such as technical standards and age. This holds especially true in “open registry” countries like Liberia, Panama, Cyprus, and the Bahamas. “Offshore registry” countries are usually colonies or dependencies. For example, there are the Netherland Antilles, Cayman Islands and the Isle of Mann. If the owner is a U.S. citizen, yachts weighing 5 tons or more can be registered at the National Vessel Documentation Center of the U.S. Coast Guard. Coast Guard documentation also offers access to a preferred mortgage that gives the lender certain benefits. However, most U.S. yacht lenders require that financed yachts are documented.

Financing a Yacht

When purchasing an existing yacht, borrowers usually take out yacht mortgages on vessels. However, arrangements differ between yacht building contracts and chartered yachts. Other influencing factors include the current and proposed registration jurisdictions, the tax treatment of the yacht, and the owner’s tax status. In conclusion, yacht financing protects the lender from the borrower’s other creditor claims.

Yacht Financing helps borrowers purchase multi-million dollar super mega yachts

Yacht Loans

Private commercial lenders like Assets America® can arrange yacht financing, as well as banks, credit unions, boat brokers and yacht manufacturers. Typically, the loan agreement takes on a basic asset-financing structure, collateralized by the fully amortizing yacht mortgage and a lien on the yacht, as well as insurances signed over to the lender. In addition, the loan agreement may give the lender a lien on any revenues generated by chartering the yacht. Finally, the lender will most probably require a personal guarantee and/or debenture from the borrower. This gives the lender a lien on the borrower’s other assets as well.

Yacht-Building Loans

For yacht-building contracts, the loan agreement will provide for cash advances to pay for pre-delivery construction milestones. Payments start with a pre-build deposit by the buyer. Installment payments follow as construction progresses through succeeding stages, evidenced by Stage Certificates. Pre-delivery requirements also include assignment of the yacht-building contract. In the case of default, the contract gives the lender the right to have the builder finish construction. Then the lender takes possession of the vessel and sells it. Accordingly, the yacht financing lender releases funds to the yacht builder upon receipt of each Stage Certificate. These must include the counter-signature of an independent surveyor. The yacht-building contract usually contains clauses that specify what happens if default occurs either by the builder or the buyer.

All loan agreements contain language relevant to warranties, insurances, and registration. The lender might also require covenants that preclude certain uses of the yacht, such as chartering. Finally, the borrower’s surveyor will have inspection rights to protect the borrower’s interests.

A mega yacht harbored in an European city with a yacht financing lender

Yacht Leases

Some people choose to lease their yachts rather than purchase them. In this case, the lessor gains title to the yacht and leases the yacht back to the lessee for an agreed term. These leases are usually “demise charters” that provide the lessee exclusive use of the yacht. In other words, the lessee is the operational “owner,” while the lessor maintains the title.

Glossary of Marine Lending Terms

TermDefinition
Accessorial ChargesA fee for services such as loading, unloading, pickup, and delivery
Bluewater VesselAny form of boat or ship suitable and equipped for sailing or motoring on the open ocean
Charter PartyThe individual or group hiring the shipowner and/or captain for temporary use of the vessel
Demise CharterAlso called a bareboat charter, this is an arrangement to hire a water vessel whereby no crew or provisions are included as part of the agreement
IRC Section 163A code of the IRS designating a water vessel as a qualified residence and therefore capable of receiving tax advantages
Length Over All (LOA)The length of a yacht as measured from "stem to stern.” Marinas and harbors often use this metric to determine how much to charge for a slip or similar accommodation
LienA legal right that guarantees an underlying obligation, for example repayment of a loan
ManifestA list of all individuals, cargo, and equipment on board
Voyage CharterA contract whereby the captain and/or shipowner places the yacht at the disposal of the charter party for one or more voyages to one or more destinations, while the captain and/or shipowner remains responsible for the operation of the yacht
Tramp ScheduleVessels operating without a fixed itinerary or schedule or charter contract

SuperyachtAlso called Megayachts, the terms often refer to yachts with an LOA of over 164 feet and/or full-time staff and crew
Yacht CharterA contract wherein the yacht is rented out fully staffed to an individual for a limited amount of time, typically a matter of days or weeks

Yacht Financing and yacht leases allow borrowers to buy mega yachts

Yacht Financing – FAQs

  • How is the current market for yachts and superyachts?

    Across the world, the boating market—whether monohull sailboats, catamarans, yachts, or superyachts—is a buyer’s market and should remain that way for the foreseeable future. Because fiberglass and other light, super-durable hybrid materials last so long, the market has become increasingly flooded. Often multimillion-dollar yachts are selling for a fraction of what they were just 7-10 years ago.

  • Is there a best time to purchase a yacht?

    The simple answer is yes, at the beginning of the off-season, although that varies around the world and especially between the northern and southern hemispheres. In Florida for instance, the best time to buy a yacht is mid to late August.

  • What are the costs involved with maintaining a yacht?

    In addition to purchasing the yacht, owners typically pay for mooring and storage, insurance, operational costs, crew, maintenance, and winterization. These costs can be rather substantial. Before purchasing a yacht, one needs to make sure they are financially secure.

  • Can my yacht qualify for tax advantages?

    Yes, for example, if a yacht has a berth, head, and galley, then it can qualify as a second home.

  • What is the least and most amount of financing I can receive?

    While our loans start at a bare minimum of $10 million, there is no upper limit to the amount of financing available to you via Assets America®.

  • What kind of down payment should I expect to make?

    While the standard down payment is 20% to 30%, really strong borrowers may be able to make a smaller down payment depending on the quality of their credit, their financial statement, and their cash position.

Online Resources for Yacht Financing and More:

A gorgeous yacht motoring in a bay with a yacht financing company

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Testimonials

Eric D.
Pleasure to work with and extremely knowledgeable

Ronny was a pleasure to work with and is extremely knowledgeable. His hard work was never ending until the job was done. They handled a complex lease and guided us through entire process, including the paperwork. Not to mention a below market lease rate and more than all the features we needed in a site. We later used Assets America for a unique equipment financing deal where once again Ronny and team exceeded our expectations and our timeline. Thank you to Assets America for your highly professional service!

exp MFGroup
Great experience with Assets America

Great experience with Assets America. Fast turn around. Had a lender in place in 30 minutes looking to do the deal. Totally amazing. Highly recommend them to anyone looking for financing. Ronny is fantastic. Give them a call if the deal makes sense they can get it funded. Referring all our clients.

William P.
Assets America guided us every step of the way

Assets America guided us every step of the way in finding and leasing our large industrial building with attached offices. They handled all of the complex lease negotiations and contractual paperwork. Ultimately, we received exactly the space we needed along with a lower than market per square foot pricing, lease length and end of term options we requested. In addition to the real estate lease, Assets America utilized their decades-long financial expertise to negotiate fantastic rates and terms on our large and very unique multimillion dollar equipment purchase/lease. We were thankful for how promptly and consistently they kept us informed and up to date on each step of our journey. They were always available to answer each and every one of our questions. Overall, they provided my team with a fantastic and highly professional service!

Bob B.
The company is very capable, I would recommend Assets America

Assets America was responsible for arranging financing for two of my multi million dollar commercial projects. At the time of financing, it was extremely difficult to obtain bank financing for commercial real estate. Not only was Assets America successful, they were able to obtain an interest rate lower than going rates. The company is very capable, I would recommend Assets America to any company requiring commercial financing.

Ricardo L.
Assets America was incredibly helpful and professional

Assets America was incredibly helpful and professional in assisting us in purchasing our property. It was great to have such knowledgeable and super-experienced, licensed pros in our corner, pros upon which we could fully rely. They helped and successfully guided us to beat out 9 other competing offers! They were excellent at communicating with us at all times and they were extremely responsive. Having them on our team meant that we could always receive truthful, timely and accurate answers to our questions. We would most definitely utilize their services again and again for all of our real estate needs.

HMG R&D
Assets America is a great company to work with

Assets America is a great company to work with. No hassles. Recommend them to everyone. Professional, fast response time and definitely gets the job done.

DAC Team
Great experience

Ronny at Assets America has been invaluable to us and definitely is tops in his field. Great experience. Would refer them to all our business associates.

MF Group
We were very pleased with Assets America’s expertise

We were very pleased with Assets America’s expertise and prompt response to our inquiry. They were very straight forward with us and helped a great deal. We referred them to all our business associates.

Manny C.
Worked with this company for decades

I’ve worked with this company for decades. They are reputable, knowledgeable, and ethical with proven results. I highly recommend them to anyone needing commercial financing.

David B.
Top-notch professional

Ronny was incredibly adept and responsive – top-notch professional who arranged impressive term sheets.

Monte M.
Assets America helped us survive a very difficult time

Assets America helped us survive a very difficult time and we most definitely give them 5 stars!

Brent G.
Gave me direction to go

Ronny was very friendly and though we were unable to make something happen at the moment he gave me some direction to go.

Allan E.
Highly recommend them for any type of commercial financing

My business partner and I were looking to purchase a retail shopping center in southern California.  We sought out the services of Ronny, CFO of Assets America.  Ronny found us several commercial properties which met our desired needs.  We chose the property we liked best, and Ronny went to work. He negotiated very aggressively on our behalf. We came to terms with the Seller, entered into a purchase agreement and opened escrow.  Additionally, we needed 80 percent financing on our multimillion-dollar purchase.  Assets America also handled the commercial loan for us.  They were our One-Stop-Shop. They obtained fantastic, low, fixed rate insurance money for us.  So, Assets America handled both the sale and the loan for us and successfully closed our escrow within the time frame stated in the purchase agreement.  Ronny did and performed exactly as he said he would. Ronny and his company are true professionals.  In this day and age, it’s especially rare and wonderful to work with a person who actually does what he says he will do.  We recommend them to anyone needing any type of commercial real estate transaction and we further highly recommend them for any type of commercial financing.  They were diligent and forthright on both accounts and brought our deal to a successful closing.

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Commercial Financing Specialist

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