There are other types of boat financing, depending on your country of residence and your tax and asset situation.
The bank can only acquire a boat if it is sold by a company subject to European VAT. If you buy your boat directly imported into Polynesia and are not a French resident, the most common form of financing is the traditional loan. This is particularly the case if you live in Polynesia.
With a conventional loan, you are the owner of the boat, and the financing organization will take out a maritime mortgage. The initial contribution required is generally higher, as the bank wants to protect itself against the risk of non-payment. The term varies from 5 to 15 years. A conventional loan will be more attractive than a LOA if you buy your boat excluding European VAT.
You can also refinance an asset other than your boat, or use it as collateral for a loan to finance the purchase of your boat. This type of financing is common in Anglo-Saxon countries and among boat owners with substantial assets. For example, if you have high-yielding assets (real estate, shares), it’s a good idea to borrow at a lower interest rate than the return on your investments, and to use them as collateral. This solution is frequently used to finance boats under lease management.
For U.S. residents wishing to finance their boat with a loan, the constraint is often that U.S. banks will require the boat to be located in U.S. waters. However, if the boat is included in one of our management programs, specialized American financing organizations will be able to offer financing, as our management guarantees that they know the condition and position of the boat if they so wish. Don’t hesitate to contact us to set up your project.
In conclusion, there are several types of financing available for your boat, whether motor, sailboat or catamaran. You need to study them carefully to find the solutions best suited to your financial situation, your tax situation and your project. You can rely on our team to advise you every step of the way.