Boat Finance in Perth

A licence to operate a marine vessel is not an essential requirement to be eligible to apply for finance. It is essential to operating a vessel but does not form part of the loan application process. Licences are issued by state and territory marine authorities and eligibility and conditions vary from state to state. To be eligible for a consumer loan, applicants are required to be over the age of 18 years, have employment or source of income and provide information and details of residential status and history; employment history; and financial situation. Financials requested may include details of income and expenses as well as other debts and liabilities. Debts include credit card balances. Applicants can expedite the application approval process by preparing their financial information prior to applying.

Commercial marine finance is available for businesses acquiring vessels for use in their operation. To be eligible as a business acquisition, the purchase would need to meet ATO rulings in regard to business expenses. To meet eligibility criteria for finance, the business owner would need to be the holder of a current ABN and have ID as minimal requirements. Being registered for GST is not essential but can be viewed as desirable by some lenders. Financial documents would be requested as part of the application. These docs may include income tax returns, BAS statements, annual accounts and other trading history financials. Where a business is newly established and does not have all the documents requested by a lender, the business may seek no docs or low docs marine funding. The most popularly used loan for business acquisitions is the Chattel Mortgage. This is a versatile form of finance, attracts highly attractive interest rate and allows for the asset to be depreciated to realise a tax deduction.

In most cases yes. Lending is available for the purchase of watercraft only and for watercraft and trailer combination package deals. Many marine dealers will offer package deals which represent a convenient and very often cost-effective way to purchase both a trailer and a vessel. In order for both items to be included in the finance, they would need to be purchased at the same and preferably but not essentially from the same supplier. If an upgrade to a trailer was required after the purchase of the vessel and finalisation of the loan contract, the cost would not usually be able to be added to the financial amount.

Financing is available to purchase the full spectrum of watercraft and vessels on the market. This includes tinnies and dinghies, fishing vessels, trailer watercraft, family runabouts, all sized cruisers, mid-range and luxury yachts, PWCs, water ski craft, houseboats and other marine craft. Finance is available for both new and used goods, purchased through authorised dealers, direct from a manufacturer and through private sellers. Individual lenders will have guidelines around the goods they finance in certain categories. Lenders will have minimum lending amounts so the price of the goods and/or financed amount requested would need to be within the threshold. Loans are available to cover the vessel only, vessel and engine and an entire vessel, engine and trailer package deal. Additional gear and equipment may be included.

The most customary and most widely-adopted process for establishing loans for watercraft is for the finance to be over a fixed term. The repayments are fixed for a monthly amount over that period. Where the terms and conditions of a contract are not adhered to, penalties or fees may apply. These can vary according to individual lender conditions. The type of changes desired by a borrower would determine what is applicable and what process needs to be followed. With personal financing, extra payments are permitted which may be a simple way to increase the repayments. If a reduction in the repayment amount is sought, either as a short-term hardship measure or over the final period of the finance, the borrower should contact the lender to discuss the options. Where a lower interest rate is sought, in most circumstances that would require a new contract or refinancing. Refinancing is available but payout or break fees would like apply to paying out existing lending prior to the agreed fixed term plus establishment costs on new finance would apply. Those considering this would be advised to weigh up the overall costs and benefits.

Additional equipment and gear may be included in the overall lending package, subject to lender guidelines and certain conditions. Items such as safety jackets, instrumentation, electronics, devices, optional accessories and other such gear may be included where they are purchased at the same time and in some cases from the same supplier as the vessel itself. Many marine dealers sell watercraft as well as equipment and it would be common for buyers to arrange all their requirements at the time of purchase. Some marine deals offer optional upgrades and accessories packs. Borrowers are directed to discuss the specifics with their lender. If included in the finance amount it may save the buyer using existing funds for the items they require to equip the vessel for safe operation.

Yes. Finance is available for watercraft purchased directly from manufacturers, through marine dealers, marine brokers and private sellers. In purchasing from a private seller it would be presumed that it was second-hand goods and finance for used vessels would be required. When using a professional lending service or broker-style lender, additional assistance may be offered to check title to the goods, if the goods are under financing and to verify seller ID and other important details. If buying from a private seller especially via an online platform, buyers should be aware of fraudulent schemes and scams. Checking with the ACCC website can be a source of information and advice in this regard.

Sailing craft are included in this overall marine category for both personal loans and commercial finance. For individuals purchasing yachts and other sailing vessels, the most common type of finance used is the Secured Loan. This type of credit has a standard and widely-accepted format which is fairly consistent across the lending market. The yacht would be offered as security by the borrower to the lender while the funding is repaid over the agreed fixed financing term in monthly repayments. Individual lenders will assess the craft being purchased when setting interest rates and lending conditions. Extra payments are permitted with this type of finance and minimal break fees apply if the finance is repaid early.