Boat syndication involves individuals buying a share arrangement in a vessel with options available to finance boat syndication with Jade Boat Loans unsecured loans. If buying, owning and maintaining your own luxury cruiser or yacht, or even a runabout, is not within your capacity or preferences, then having a share through a syndicate set-up may be an ideal option. An option which can be easily accessible, flexible, require less hassle, less obligations, is affordable and financeable.
Sharing the ownership and/or use of vessel can be set-up in a number of different ways - through commercial companies or even through friends and families. Whichever way you choose, financing for the cost of the share may be available through our versatile unsecured personal loans. Allowing individuals to enjoy the boating lifestyle without the full commitment associated with owning and maintaining a vessel by themselves.
What is boat syndication?
Syndicating a marine vessel can take different forms and be based on different models. Equity ownership, boat share, and membership being the most popular used by commercial operators. What is involved, the costs, how much time each shareholder gets to use the vessel, and other features vary with each syndication model.
Equity models involve individuals purchasing equity in a vessel but still enjoying the walk-on walk-off experience. When the vessel is sold, those in the syndicate share in the profits of the sale. Essentially investing in a vessel. Time availability for each stakeholder to use the vessel depends on individual companies.
Membership models provide usage of vessels with a fee structure which can be monthly or yearly. While members do not own the boats and do not receive proceeds if vessels are sold, this can provide a very flexible option, especially to leave the arrangement when desired.
COBLI operates on an equity model, which companies like Freedom Boat Club and Pacific Boating operate on membership models. Some companies have boats available in locations across Australia while others will be limited to certain waterways.
Many of these companies present high-end luxury vessels – cruisers and yachts, which can be beyond the reach of the average buyer. Providing an opportunity to have use of a vessel that essentially, you could not afford to purchase yourself. A win-win for many, especially those that, in reality, do not have that much time available to use their boat. When they do have time, within the conditions of the arrangements, the vessel is set-up ready for them to step onboard and head out.
Another option is sharing ownership of a vessel with people you know. This could be family members, fishing mates or other friends. With this option, a greater level of financial and hands-on responsibility is involved. Everyone would need to cover the ongoing maintenance, registration, insurance and mooring expenses, handle the cleaning and other tasks involved with owning a boat. But there may be more opportunities to spend more time on your boat with more flexible share arrangements or boating together.
Some classic vessel enthusiasts may choose to purchase an old vessel jointly with others and work together to restore and renovate it and then enjoy the boating lifestyle.
From a cost perspective, some companies will offer a joining fee and then a monthly fee. Others will require a larger lump sum to buy the share. Prospective buyers should study the features, terms and conditions offered by a commercial operator of a syndicate or membership-based boat company to decide which is best suited to their requirements.
Whichever arrangement is selected, the person operating the vessel will need to have the appropriate boating licence, know boating safety rules and regulations, acquire the skills to operate the vessel and understand how everything works.
What are the options to finance boat syndication and boat sharing?
If joining a membership set-up where fees are payable monthly, financing may not be required. Where a large annual fee is payable, a loan may be required. When purchasing a stake in a boat through a company or with friends, with a lump sum payment, financing may be required.
When investing in boats with a share equity arrangement, when buying in conjunction with friends, or when joining a membership-based company, buyers are not in a position to offer their portion of the vessel as security against a loan. For this reason, Unsecured Personal Loans are best suited to buy shares in boats.
This is a very versatile type of credit in that essentially, no collateral is required to get approved, and it can be used for a wide range of personal expenses and purposes. Some applicants may be required to provide some form of security through other assets. With no security against the funds, the interest rates are higher than for secured marine loans.
The amount an individual is approved to borrow, their credit limit, will be determined when the application is assessed. Terms can be flexible, rates fixed or variable, and repayments negotiated by our brokers to best suit individual budgets.
Comparing Options
To help with deciding which boat sharing arrangement with finance is best suited to your budget, boaters can use our Finance Calculator. Work up estimated repayments for different loans over different terms, to make comparisons and decisions. Buyers can also work up estimates to compare secured and unsecured loans to see the difference in financing your own boat, compared with a share arrangement.
To discuss your options to finance boat syndication and boat share arrangements, contact Jade Boat Loans 1300 000 003.
DISCLAIMER: THE INFORMATION AND SPECIFIC DETAILS CONTAINED IN THE CONTENT OF THIS ARTICLE HAVE BEEN PREPARED AND ARE PRESENTED PURELY AS GENERAL INFORMATION AND NOT INTENDED AS THE ONLY SOURCE OF FINANCIAL ADVICE FOR BOAT BUYERS AND LOAN BORROWERS. FOR THOSE THAT CONSIDER THEY REQUIRE SPECIFIC ADVICE, THEY SHOULD CONSULT WITH A FINANCIAL ADVISOR. LIABILITY IS NOT ACCEPTED IN REGARD TO ERRORS AND MISPRESENTED DATA AND DETAILS HEREIN.
"
alt="">