Boat financing and insurance
Buying or selling a yacht or vessel often involves more than just the transaction. Financing and insurance also play an important role. We are happy to help you on your way by guiding you through this and putting you in contact with the right parties.
Important to be clear: we are not a bank and do not act as financial advisors. We do not give financial advice and do not mediate in financial products ourselves. What we do do is use our experience and our network to refer you to specialized parties who can help you further.
For financing and insurance, you can think of parties such as Kuiper Insurances and Robbe Financial Consultants. These are established names within water sports and ship financing, who can provide you with substantive advice and guidance.
In practice, financing a ship turns out to be less complicated than is often thought. Especially when you work with the right specialists, there are usually several possibilities. We make sure you get to the right party at the table, so you can take the next step well-informed.
1. Revolving credit
With a revolving credit, you may always withdraw money up to a pre-agreed amount. This form is easy if you occasionally need to make larger payments, and then spend months or years just paying them off. This form is popular for small renovations – kitchen or bathroom or for people who want to finance a larger asset purchase once every few years. Money you have repaid can be immediately withdrawn again up to your limit. The interest rate on a revolving credit is usually more advantageous than other forms of credit. One disadvantage is that the interest rate is variable; you pay a fixed amount each month for interest and principal. The ratio between interest and repayment is determined by the interest rate at the time and the outstanding amount of your credit.
2. Personal Loan
With a personal loan, you borrow a predetermined amount. When the loan is taken out, the amount of interest and the total term are fixed. The advantage of a personal loan is that you always know where you stand and when you have paid it off. Interim withdrawal of redeemed money is not possible with this form.
3. combination calculation
A combination credit is a revolving credit linked to a savings/investment insurance policy. With this form, you pay interest calculated on the amount you withdrew and also a fixed amount per month for the savings or investment policy. During the term, you can continue to withdraw money up to your limit. The savings policy/insurance/investment you pay monthly during the term is used to build capital to repay the loan. The repayment of your loan is made from the accumulated savings/investment, provided you have not made any interim withdrawals and have saved or invested sufficiently. So this depends on interest rates or price developments of your investments.
4. Current account
You are allowed to be in the red in your current bank account up to an agreed amount, banks call this salary credit or overdraft facility. The amount of the limit depends on your monthly income and you must be positive once every 3 months.
5. Lease/purchase
Buying cars, caravans, boats on installments. We’re talking about installment plan here, which usually starts with a down payment or trade-in value and the remainder of the purchase price paid in installments. You only own the property after you pay off the last installment.
6. Ship mortgage
A ship mortgage is a financing for your yacht, where the interest rate payable is often a lot lower than a regular boat financing. Through a notary, the ship mortgage, like a home mortgage, is established. The vessel, on which the mortgage is established, must meet certain requirements. One of these requirements is that the vessel be branded. Branding means putting the vessel on a register and affixing a registration number.
Do you have questions or are you curious what we can do for you? Please feel free to contact with us.