Financing Your Boat
Owning a boat is a great idea that everyone should look forward to. You want to be able to enjoy your holiday with your family on the sea. Even if it’s not for pleasure purposes, you might just be able to get yourself a boat for commercial purposes. Now, all this seems great until you find yourself trying to purchase that dream boat.
You’ll find yourself needing to spend thousands of dollars to make your dream a reality. Even if you decide to opt for a used boat, you’ll still need to have made a considerable investment. Unfortunately, this can become an issue as it holds financial inconvenience in some cases. So, you’ll find yourself wondering if you should get the boat or just put a hold on the dream.
Well, if the reason why you’re considering halting your boat dream is a financial inconvenience, you don’t have to worry about that anymore. You can now get yourself out of this situation easily. All you need to do is rely on boat finance.
What Is Boat Finance?
This is a financial arrangement where you get access to the amount you require to complete your boat’s purchase. Under this arrangement, you approach a lender who provides the loan amount to you. After that, you then commit to making a repayment over some time. Usually, you’ll need to pay interest on the amount the lender borrowed you.
Once you complete the repayment, the agreement comes to an end, and you enjoy unlimited ownership of the boat.
At Victoria Week, we recognise the important role that boat finance plays to allow you to get your dream boat. So, we encourage it. We do not offer boat finance, but we have partners who do. You can contact any of our finance partners to get started.
Why Boat Finance
For some of us, the thought of borrowing money isn't something we enjoy. So, we'll most likely be thinking should I go for boat finance or not. The reality is that boat finance comes with a wide range of advantages, which is why you should go for it. Some of these advantages include:
You Enjoy Financial Convenience
One of the major perks that come with boat finance is that it brings financial convenience. You might have been thinking you'll need to cut out some important expenses after paying outrightly for the boat. However, with boat finance, you don't need to cut out any important things you need to get. You retain your capital, get the boat, and can repay at your pace.
You Get Faster Access to Your Dream Boat
Without financing, your next best option is to save for the boat. This might take as long as a year, if not more. This means that for a long while, you’ll be denied access to the dreamboat that you want.
However, when it comes to boat finance, you don’t need to face this denial. All you’ll need to do is get the boat finance. You can then repay in instalments just as if you’re saving. However, at this point, you already have your boat with you.
Another reason why you enjoy boat finance is that it brings flexibility to the table. There is a wide range of financial packages that you can get access to. You can always choose an option that suits your specific needs.
Available Finance Options
There is a wide range of available finance options that you can use to bring your boat dream to reality. The two popular options are:
Unsecured Loan Option
An unsecured loan option is naturally a finance option. As such, it allows you to access the loan amount you need to purchase the boat and then promise to make repayment of the sum over a while.
However, what distinguishes this loan option is that you don’t need to provide security for this loan option. You access this loan option without any asset as security. This option provides you with a flexible repayment option that can span as many as seven years.
However, this option usually attracts a higher interest rate. This is because this finance option comes with a higher risk to the lender. In turn, as compensation, the lender demands a higher interest rate.
With this option, you get access to the boat without any form of encumbrances from the very beginning. You then repay the loan sum and interest to put an end to the loan agreement.
Secured Loan Option
A secured loan option is naturally a finance option. As such, it allows you to access the loan amount you need to purchase the boat and then promise to make repayment of the sum over a while.
However, what distinguishes this loan option is that you provide security for this loan option. You access this loan option using an asset as security. Typically, you’ll use the boat in question to secure the loan arrangement. This option provides you with a flexible repayment option that can span as many as seven years. Luckily, this option usually attracts a lower interest rate. This is because this finance option comes with a lower risk to the lender.
With this option, you get access to the boat. However, there is a charge on the boat thanks to the security agreement. You then repay the loan sum and interest to end the loan agreement, removing the charge on the boat.
Boat Finance Calculator
This is a tool that allows you to determine the financial obligation you’ll have to bear if you were to enter into a boat finance agreement. This is usually regarded as a boat repayment calculator that allows you to determine the repayment needs.
Usually, you’ll need to provide vital information to use this tool to get the desired result. This will involve the amount you want to borrow. It will also extend to the repayment duration, the interest rate, and the repayment structure. Once you provide all this information, all you need to do is click calculate. Afterwards, you’ll get the value of your repayment obligation.
So, if you’re having trouble paying outright for your boat, you can maximise any of our partners to get yourself boat finance.