Marine and Boat Finance

  • Fast service - finance within 5 to 7 days
  • Access to specialist lenders
  • Expert advice - professional service 

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Marine and Boat Finance

Spreading the cost of a ship or vessel significantly reduces the impact of the bill, freeing up capital for business ventures or your personal lifestyle – but finding the best terms without expert support can be a turbulent ordeal.

Clifton Private Finance is here to support you through the choppy waters of marine and boat finance, delivering the best terms on the market with a service tailored to you and your business needs.

  • Finance from £25,000 - £100m
  • Leisure and commercial vessels
  • Term up to 15 years
  • UK and offshore
  • Marine Mortgage
  • Bespoke pricing and repayment profiles, to include balloon structures

Asset Finance Success Stories

£13m Asset Finance Loan for Pharmaceutical Business | Case Study
£13m Asset Finance Loan for Pharmaceutical Business
Area
London
Capital Raised
£13m
Date
November 2024
Fleet of Vans Refinanced to Release £160k for Business Growth
Fleet of Vans Refinanced to Release £160k for Business Growth
Area
Cardiff
Capital Raised
£160k
Date
September 2024
Fast Asset Finance for Two Tractors at Low Rate | Case Study
Fast Asset Finance for Two Tractors at Low Rate
Area
Somerset
Capital Raised
£558k
Date
July 2024

 See All Business Finance Case Studies

Why Our Customers Trust Us

With expert guidance, asset finance can provide an essential, versatile, cost-effective solution.

business finance rates

Market-Leading Rates

We provide access to market-leading rates for every client, thanks to our relationships with asset finance lenders across the market.

Award Winning Team

Multi-Award-Winning Team

Our team of asset finance advisers have years of experience and are qualified to the highest level. We're proud to have numerous customer service awards to our name.

independent advice

Fully Independent

As an independent brokerage, we focus on your best interests when comparing asset finance options: from costs and terms to speed of service.

To book a free, no-obligation call with an adviser to discuss your options, contact us today.

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Our Experts

Our dedicated asset finance team have deep industry knowledge and years of experience.

Jon Moffatt

Jonathan Moffatt

Head of Business Finance

Ben Francis

Ben Francis

Finance Executive

James Ellcaott

James Ellacott

Commercial Finance Broker

How We Work

1. Get a Customised Quote

Our asset finance brokers will get an understanding of your business and your requirements, look at your financial forecasts and accounts, and provide a sense-check on what product(s) will best fit your needs, as well as how much you could borrow, and what the costs and terms could look like.

2. Compare Options

When you’re happy with the proposed solution, we’ll go away and compare options across the market. We’ll often present a range of choices ranging from lowest cost to most flexible, and we’ll talk you through the pros and cons of each if it’s a close decision.

3. Submit Your Application

If you’re happy with the terms we can source, we’ll handle the paperwork and submit your application for you. We’ll handle any issues and questions that may arise from the lender, and we’ll keep chasing your application to ensure funds are released as quickly as possible.

4. Receive Funds

You receive your finance success! We’ll always be here for any ongoing questions or support you require during your loan term. 

Speak to an asset finance specialist today

Get the funding your business needs to reach its full potential. We’ll guide you through the process and take care of the heavy lifting. 

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Marine and Boat Finance

A Guide

Marine vehicles and boats are the perfect choice for those who love the adventure and thrill of exploring the waters. Marine vehicles and boats offer you convenience, comfort, and fun, as well as a wide range of options to match your preferences and needs. You can choose from different types, sizes, and features of marine vehicles and boats, depending on your budget and lifestyle.

However, buying marine vehicles or boats is not a simple affair. The upfront cost of a new or used marine vehicle can be quite high, and you also have to consider the depreciation, maintenance, and insurance costs that come with owning such a valuable asset. That’s why many people opt for financing their marine vehicles and boats instead of paying cash.

But how do you finance a marine vehicle in the UK? What are the different options available, and how do they compare? How do you find the best deal for your needs and circumstances? And what are the popular types of boats that you can buy on finance?

The Different Finance Options Available for Marine Vehicles and Boats

If you want to buy a boat or a yacht in the UK, you have several finance options to choose from. Each option has its features, advantages, and disadvantages. Depending on your personal and financial circumstances, you can choose the one that suits you best:

Marine Finance

Marine finance is a form of leasing, where you pay a monthly fee to use the boat or yacht, but you do not own it. The monthly fee is based on the depreciation of the marine vehicle over the lease term, and the residual value at the end of the lease. The residual value is the estimated value of the marine vehicle at the end of the lease, which is agreed upon at the start of the contract.

The advantage of marine finance is that you can enjoy sailing a new marine boat without having to pay the full purchase price upfront. You also have lower monthly payments than other finance options, as you are only paying for the depreciation of the marine vehicle and boat.

Marine finance is similar to asset finance, which is a general term for leasing any kind of asset, such as vehicles, machinery, or equipment

At the end of the lease, you have three options, you can either:

  • Buy the boat for the residual value
  • Sell it to a third party and pay the difference between the sale price and the residual value
  • Extend the lease for another term.

Boat Loan

A boat loan is a form of credit, where you pay a deposit and then monthly instalments to buy the boat over a fixed period. The monthly instalments include both the principal and the interest, and the interest rate is usually fixedThe boat is the security for the loan, which means that if you fail to make the payments, the lender can repossess it. This is similar to hire purchase, which is a type of asset finance that allows you to own the asset at the end of the contract, after paying a final option to purchase fee.

The advantage of boat loan is that you can own the boat at the end of the contract, and you can choose the deposit and the duration of the contract to suit your budget. You also have the option to settle the loan early, by paying the outstanding balance and a small fee. The disadvantage is that you have to pay interest on the loan, and you do not own the boat until you make the final payment.

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Boat loans and marine finance may have some differences from hire purchase and asset finance, such as:

  • The interest rate may vary depending on the type and age of the marine and boat, the loan amount, the deposit, and the credit history of the borrower.
  • The lender may require a marine survey, valuation, and insurance of the marine and boat before approving the finance.
  • The lender may have a lien or charge over the vehicle as security for the loan, which means that they can repossess it if the borrower defaults on the payments.
  • The borrower may have to register the boat with the relevant authorities and comply with maritime laws and regulations.

Hire Purchase with Balloon Payment

Hire purchase with balloon payment is similar to a boat loan, but with a twist. Instead of paying equal monthly instalments, you pay lower monthly instalments and a larger final payment, known as the balloon payment. The balloon payment is usually 25% to 50% of the purchase price of the vehicle, and it is agreed upon at the start of the contract.

The advantage of hire purchase with balloon payment is that you can have lower monthly payments than a boat loan, and still own the boat at the end of the contract. You also have the option to refinance the balloon payment or trade in the marine and boat for a new one.

Contract Purchase

Contract purchase is a leasing option, where you pay a deposit and monthly instalments, based on the depreciation and the residual value of the marine vehicle or boat. You do not own the marine and boat, but you can buy it for the residual value, return it, or part-exchange it at the end of the contract.

Contract purchase has lower monthly payments and less upfront cost than other finance options, but no equity and possible extra charges for exceeding usage limit, or any damage or wear and tear.

At the end of the contract, you have three options. You can either buy the vehicle for the residual value, return it to the lender and walk away, or part-exchange it for a new one or use any equity as a deposit.

Personal Contract Purchase (PCP)

PCP is a flexible leasing option, where you pay an initial payment and lower monthly instalments, based on the depreciation and the residual value of the marine vehicle or boat. You can own, return, or part-exchange the boat at the end of the contract, by paying, avoiding, or using the residual value as a deposit. PCP has lower monthly payments and more options than contract purchase, but higher interest and a large final payment.

Popular Models of Marine Vehicles and Boats You Can Buy on Finance

Now that you have an idea of the different ways to finance a marine vehicle, you might be wondering what types of boats you can buy on finance. The good news is that you can find almost any model of marine vehicle on finance, as long as it is within your budget and meets the lender’s criteria. However, some models are more popular and available than others, depending on the demand, supply, and market trends. Here’s a brief overview:

Model

Description

Price Range

Monthly Payment

Sunseeker

Luxury motor yachts, petrol or diesel engines, sleek and sporty design, spacious and elegant interior, leather seats, sunroof, advanced navigation and entertainment features.

£200,000 to £30,000,000

£1,500 to £200,000

Sealegs

Amphibious RIBs, petrol or diesel engines, three fat offroad tyres on hydraulically operated legs, retractable from their upper positions, powered on the water by an outboard motor and on the land by a small Honda inboard engine

£50,000 to £200,000

£400 to £1,500

Gibbs Quadski XL

Amphibious ATVs, 175hp BMW Motorrad K1300 engine, rear-wheel-drive on land, jet propulsion on water, rapid (four-second) transition, two-seater

£30,000 to £40,000

£250 to £300

Zodiac Medline 9

Luxury inflatable boats, petrol or diesel engines, spacious and modular deck, sunbathing area, U-shaped saloon, kitchenette, cabin with double bed, toilet, shower, electric windlass, ski mast, bimini top

£100,000 to £150,000

£800 to £1,000

Cranchi Endurance 30

Sporty motor boats, petrol or diesel engines, open cockpit, sunpad, swim platform, hardtop, sliding roof, cabin with double bed, toilet, shower, galley, fridge, TV, stereo.

£80,000 to £120,000

£600 to £800

Tugboat

A boat or ship that manoeuvres vessels by pushing or towing them, used for harbour operations, salvage, or towing barges

£50,000 to £5,000,000

£400 to £40,000

Pilot Craft

A boat or a larger ship used to service or support other boats or ships, generally to transport harbour pilots

£20,000 to £2,000,000

£150 to £15,000

Additional Costs of Owning a Marine Vehicle

Owning a boat or marine vehicle of any kind can be a significant financial commitment, so you should carefully plan your budget and compare the different finance options available. You should also consult with a professional marine vehicle or boat broker, who can help you find the best marine vehicle or boat for your needs and negotiate the best deal for you.

At Clifton Private Finance we can help. With over 20 years of experience and access to exclusive lenders and rates, we’ll offer you expert advice, tailored solutions, and a hassle-free service. Contact them today and get your dream marine vehicle or boat on finance.

Besides the purchase price and the finance cost, you should also consider the costs of owning and operating a marine vehicle or boat, which can vary depending on the size, type, and condition of the marine vehicle or boat. Some of the main costs include:

  • Mooring fees: You have to pay these fees to dock your marine vehicle or boat at a marina or harbour. They can range from £100 to £10,000 per month, depending on the location, facilities, and availability.
  • Maintenance fees: To keep your marine vehicle or boat in good shape and working order, you need to pay these fees. They can include cleaning, painting, servicing, repairing, and replacing parts. They can range from 10% to 15% of the purchase price per year.
  • Insurance fees: These fees protect your marine vehicle or boat from damage, theft, or liability. They can depend on the value, age, and usage of the marine vehicle or boat, as well as the coverage and deductible you choose. They can range from 1% to 4% of the purchase price per year. In the UK, it is not required to get an insurance plan for your boat, but it is highly recommended.
  • Fuel fees: These fees power your marine vehicle or boat, whether it is petrol, diesel, or electricity. They can depend on the size, speed, and efficiency of the marine vehicle or boat, as well as the distance and duration of your trips. They can range from £50 to £5,000 per trip.
  • Crew fees: These fees cover the hiring and managing of the crew for your marine vehicle or boat, such as the captain, engineer, chef, and steward. They can depend on the number, qualification, and experience of the crew, as well as the tips and benefits you provide. They can range from £20,000 to £200,000 per year. However, not all marine vehicles or boats require a crew, especially if they are smaller or simpler to operate.
  • Wintering and dry dock fees: These fees cover the storage and protection of your marine vehicle or boat during the off-season, when you are not using it. They can include lifting, cleaning, antifouling, and covering the marine vehicle or boat. They can range from £500 to £5,000 per year, depending on the size and type of the marine vehicle or boat.
  • Survey fees: These fees cover the inspection and valuation of your marine vehicle or boat by a qualified surveyor, usually before buying or selling it. They can also include testing, sampling, and reporting on the condition and performance of the marine vehicle or boat. They can range from £200 to £2,000 per survey, depending on the size and type of the marine vehicle or boat.

If you are interested in buying a yacht, which is a luxury marine vehicle or boat, you should be aware that the costs are usually much higher than for other marine vehicles or boats. 

For example, a yacht can cost from £200,000 to £30,000,000 to buy, and from £1,500 to £200,000 per month to moor. A yacht also requires more maintenance, insurance, fuel, and crew than other marine vehicles or boats. You can take a look at our yacht finance page to learn more.

What Happens at the End of a Marine Finance Plan?

Marine finance is a type of finance that allows you to use the marine and boat as an asset for your business or leisure while paying a fixed monthly fee to the lender. You can either a finance lease or an operating lease, depending on whether you want to own the marine and boat at the end of the term or return it to the lender.

At the end of a marine finance plan, you have different options depending on the type of lease you have chosen. Here are the possible scenarios:

  • If you have a finance lease, you can either pay a nominal fee to the lender and own the vehicle, sell the boat to a third party and keep most of the proceeds, or extend the lease for another term at a reduced rate.
  • If you have an operating lease, you can either return the vehicle to the lender and pay any excess usage or damage charges, buy the boat from the lender at an agreed price, or swap it for a new one and start a new lease.

The option that you choose will depend on your preferences and circumstances. For example, if you want to own the boat at the end of the term, you might prefer a finance lease. You might prefer an operating lease if you want a newer and more efficient marine vehicle.

Using a Finance Broker to Help

Using a Finance Broker to Help If you are interested in financing a marine vehicle or boat in the UK, you might want to consider using a finance broker to help you with the process.

A finance broker can help you find the best marine vehicle or boat finance option for your needs and budget, as well as negotiate the best deal with the lender. A finance broker can also advise you on the different types of marine vehicle or boat finance available for buying a marine vehicle or boat, such as flexible terms, low deposits, and bespoke solutions.

At Clifton Private Finance, we have a team of specialist finance brokers who can help you finance a marine vehicle or boat in the UK. We can work with marine vehicle or boat manufacturers and dealers to arrange your marine vehicle or boat finance plan and finalise your purchase. We can also help you finance new, used, or auction-bought marine vehicles and boats, and offer the most competitive marine vehicle or boat finance service for you.

To find out more about our finance broker service, don’t hesitate to contact us today.

We offer a free and no-obligation telephone consultation at a time that suits you.

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Frequently asked questions

You can find the most common questions asked about asset finance loans below. If you have a question that isn't answered here, please email us at commercial@cliftonpf.co.uk

Asset finance is a way of spreading the cost of equipment used by businesses over time, allowing companies to keep a strong, consistent cash flow whilst minimising upfront costs.

There are many asset finance products to choose from when considering asset finance, such as hire purchase, operating leases and finance leasing, so there are plenty of options to consider for your every business need.

The asset financing structure is the financial arrangement organised between businesses and lenders to secure funding to acquire equipment that is directly related to the operation and growth of the business.

Asset financing typically involves several key elements, which are as follows:

Assets used as collateral:

A lender will likely secure finance against the asset itself or other assets, which can be tangible or intangible.

  • Tangible Assets: vehicles, construction equipment, real estate, or inventory.
  • Intangible Assets: intellectual property, accounts receivable, revenue streams.

Types of Asset Financing:

The following is a list of several products available to business owners as options for asset finance:

Leasing: Businesses that choose to lease do not outright own the asset and pay a monthly cost to use the equipment at a much lower cost than purchasing the equipment.

Hire Purchase (HP): A standard choice for businesses, this option allows you to eventually own the asset you’re paying for after the payment period has ended.

Asset-Based Lending (ABL): A business borrows money against an asset as collateral, and it’s commonly used to acquire working capital for operational or growth needs.

Loan-to-value (LTV): The loan-to-value ratio of assets is the calculation of a percentage which helps to determine the risk of the loan itself. A high LTV ratio typically indicates a higher interest rate for businesses as it’s far riskier to finance.

A low loan-to-value ratio is generally more comfortable for lenders, lower repayment periods and lower fees ensure that the asset can be repaid easily. If an asset depreciates over time, however, and becomes under-collateral, this means that the lender wouldn’t be able to fully recover the amount owed if the asset is repossessed.

Should there be a major decrease in collateral value, lenders might seek to acquire additional collateral from the business owner, or even increase fees and interest, impacting cash flow.

Business loans are products designed for general use throughout businesses. They can be used for general business needs, including asset finance, which has the added benefit of the asset not necessarily being used as collateral for the loan itself.

Asset finance, however, is more specific: its use is for the acquisition of assets and is restricted to only that. Lenders will use the asset itself as collateral for improved lender comfort, being reclaimed in the event that you do not pay your asset finance.

One major distinction between asset finance and business loans is interest rate: asset finance interest is typically lower compared to unsecured business loan interest, which is notably higher.

Should you fail to repay your asset finance, you can face an impacted credit score and ultimately lose the asset in a repossession.

Depending on the asset you’re funding, there’s also a risk of depreciation - particular risk for vehicle finance.

In some cases, if a machine you’re financing is essential to the functioning of your business operations, then factors such as depreciation or loss of efficiency of the equipment can cause lender discomfort, leading to slightly higher interest rates.

Equipment financing is typically used by growing businesses looking to limit the impact on cash flow from an expensive piece of equipment by spreading the cost over a period of time.

Small and medium-sized businesses (SMBs) can use equipment finance to limit the loss of capital and scale up operations without a massive upfront cost to deal with. Accessing equipment finance isn’t limited to a single industry, its uses spread from healthcare with MRI scanners, to construction, manufacturing, agriculture and more.

Let us do all the hard work of finding the right product and lender for your circumstances. We secure business finance for applications of all types, and we negotiate competitive lending to meet your needs and timescales.

Jonathan Moffatt
Head of Business Finance

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