For a complete novice, prequalifying for a loan for large marine vessel or a cruise ship can be somewhat difficult. The entire financing process begins with a formal loan application. An application is given to a finance company, allowing them to accomplish a verification on your company’s credit or on your personal information.
Here is a valuable discussion that can help the first timer regarding cruise ship finance. Your loan application must include basic company information, background and financial information like copy of last year balance sheet. If you apply as a private person you should state your full legal name, physical address, contact information, property/asset ownership details, employment history, debt service as well as financial records.
The finance company will then confirm your monthly earnings. You will have to submit your tax return for the last two years or present a financial statement that comprises information on your business and properties. This information enhances the buyer’s chances of getting his or her loan for cruise ship finance approved. Pre-qualifying for a large vessel loan for quality cruise ships for sale is a strategic process that provides buyers with a financial structure to guide you all the way through the financing course.
Consulting a loan broker that specializes in ships and vessels provide purchasers with access to various marine loan lenders. This further enhances your scope and your odds of finding a specific plan that suits your budget plans. There are international banking corporations that specialize in ship financing. However, these bankers basically accept reputable ship owners with whom they have a long lasting relationship.
New buyers or a start-up company are recommended to go to a local bank where buyers have a good rapport. It is also possible to finance cruise ships through bonds, but this actually works for larger investments, for instance, USD 200 mill and above. Bankers usually need a good business plan and a credit worthy applicant.
However, buyers should not forget that hiring the service of ship loan brokers may put your credit score at risk. A ship loan broker submits your application to different marine loan lenders to seek the best deal. Ship loan lenders run a credit check always after having received an application, thus reducing your credit report. Hence, submitting your loan application for cruise ship finance to several marine loan lenders is not desirable as it may reduce your credit to a great extent. It’s always wise to speak to your broker regarding this procedure.
Hiring ship loan brokering services is mostly used for bond financing. It is good to search for alternative market and for larger investments this can be the bond market. For smaller cruise vessel investment your local bankers can be the best option. You can opt for a fixed-interest marine loan, or balloon-payment or one with a convertible rate.