In this episode we talk to Jennifer Meyers of Yacht Closer Financial. We talk about the basics of financing catamarans with particular emphasis on current market conditions and the nuances of financing a catamaran located in the Caribbean.
Her contact information phone at 954.816.1818 or email to finance@yachtcloser.com. The website is www.ycfinancial.com where you can fill out an application for marine financing.
What is a marine finance agent? What do you do?
We are primarily a service company that assists buyers with financing for boat purchases. Financing for boats is really based on the strength of the borrower but there’s so many programs to fit so many different types of borrowers and we have all of them as a service company.
We have several different lenders that we work with and once we get someone interested in a purchase we will fit that borrower to the right program. We handle all the upfront underwriting. We handle getting all of the supporting documents for qualifying the borrower for the program. We verify income. We verify liquidity, and we put the whole package together for the lender.
How is the current marine finance market?
The market is booming.
What are the normal marine finance terms like (rate, down payment, term)?
You tailor the program based on what the borrower would like to do. There is mainstream lending 20% down 20 years. The boat’s over 15 years of age. Anything over a $100,000 those are the parameters.
How long does it take to get a response from the lender?
The process is different for every lender. They all have different workflows and different processes for the most part though once you get a complete package which entails all of the financials the application and the bank statements and everything that we ask for most lenders turn around within four to five days.
How long is the financing rate and terms good for?
Rate locked for either 30 to 60 days depends on the bank.
All of the information for the approvals are provided to the borrower in writing so that they have everything in front of them so they know where they stand in order to move forward.
What types of catamarans are the easiest to finance?
That’s an easy question. Boats that are production boats that come from a reputable manufacturer are the easiest to finance. Fountain Pajot or you know any any well-known brand that puts out a decent amount of product so that you can find comparable sales in order to value the product. Those ones are the easiest because the banks are looking to be able to compare what’s being sold out there so that they’re comfortable with how much they’re lending on those boats.
Custom boats that are you know only made one or two made a year those ones become a little more tricky to get done.
How old a catamaran can you finance? Are there special circumstances to finance a catamaran older than 20 years old?
Boats in general regardless if their catamarans or not most lenders are 20 years or newer. We can go 30 years and that also depends if there’s enough supporting information for that boat. Of course the older you go the stronger you need to be as a borrower and that means really good credit very good liquidity and an overall strong financial pictures.
Are there size limits to financing?
There’s no size limits really. There’s a lending limit as far as how much these lenders are willing to lend most of them have a $70,000 and up restriction and then that determines the down payment and the rate and the term that comes along with those programs.
Are you able to finance catamarans in the Caribbean?
There are lenders out there that will permit the borrower to keep the boats in the islands or in the Caribbean or in the Virgin Islands. Those programs are have a little stricter guideline the rate is a little bit higher the down payment is more but yes it’s possible.
Any specific advice to buyers considering catamarans in the Caribbean?
As far as me being the representative for the bank. The bank is obviously wanting to be most comfortable knowing that the boat’s condition is in good condition all of our programs require a full survey done by a certified surveyor those surveys must provide full pictures of the boat’s current condition.
How do buyers get in contact with you?
Most people if they’re not working with a broker can contact us through our website www.ycfinancial.com. There’s an application there that helps get the process started so that we can qualify them and help them with being able to give us what we need so that we can get the deal done as soon as possible. Otherwise the good old-fashioned way never hurts a phone call or an email.
