Owning the boat of your dreams is a dream you should pursue. However, this can become quite difficult due to the financial requirement that comes with it. Usually, whether new or used, the cost of your boat purchase can run into thousands of dollars, making it unaffordable for you.
The great thing is that your boat does not have to remain unaffordable. You can now finance the purchase of your boat through various lenders. You receive the cost price for the purchase; then you commit to making repayment over a period.
You can take advantage of this option as various lenders ensure you can purchase your boat through a seamless and hassle-free loaning process.
If you are looking to obtain boat finance, you would have to pass through various processes. Here is what you need to know.
At this stage, you will need to make an application to a lender requesting for boat finance. Various lenders are ranging from banks to financial institutions, and peer-to-peer lenders that can help you.
You can also apply through a brokerage company. They take control of the application process and ensure it is even more comfortable for you.
Here, your potential lender will examine your application to confirm if you meet up with the loaning requirement. One aspect that is prominent during this process is the credit check. Your lender will assess your credit status to determine if you are a low risk or high-risk borrower.
Then, depending on its policy, it will decide if you get the loan.
If you qualify for the loan, then the lender will approve the loan sum and the loan terms. However, depending on the result of the assessment, there might be some changes to your loan terms.
Then, the lender will draw a contract reflecting those terms that you will need to sign. After you sign it, then the finance agreement is operative.
After you sign the agreement, you will then receive the loan amount that you requested. After which you can proceed to make your necessary purchases.
You will then begin to make your instalments as you agreed to under the loan agreement. Then, once you complete this, the loan agreement comes to an end.
If you are looking to get boat finance, you can take advantage of two financing options. Typically, most lenders offer boat financing options. The difference then is in the terms and nature of the loan option.
These financing options are
You can take advantage of the secured loan option for your boat finance. With this option, you receive the loan amount from your lender. Then, you go on to make the necessary purchase.
Afterwards, you execute an agreement using the boat or any other asset as security for the loan. This option usually comes with a lower interest rate since you have provided an asset that secures the loan in default of your repayment.
You can also take advantage of this financing option that does not require you to provide security for the loan. With this loan option, you receive the purchase price from your lender. You can then make the necessary purchases.
However, you do not need to use the boat or any other asset to secure the loan. As such, you will need to pay a higher interest rate than the secured loan option.
Boat finance comes with various advantages that make it a great option if you can not afford outright purchase. These benefits include
With boat finance, you enjoy easy access to funds that you require to make your boat purchase. You do not have to wait years saving to make your purchase. You do not even need to produce an asset as security as you can get an unsecured loan.
Now, you can easily access funds and make repayments later.
With Boat finance, you also enjoy convenience. You can avoid the financial difficulties and stress that comes with making purchases out of your limited cash. Now you can make the purchase and pay back conveniently over time.
Boat finance also comes at an affordable rate. Borrowing has never been cheaper. You get low rates in addition to your financial convenience and flexibility. With the unsecured option, you get an interest rate that will hardly push you out of your comfort zone. It is even cheaper when you choose the secured option.
In case you are unsure about the affordability of your boat finance, you can always use a boat finance calculator to determine this. It is a tool that allows you to confirm the value of your monthly repayment based on your loan term. Typically, while it is not as accurate as a quote, it provides an estimate.
For you to get an estimate, all you will need to include is the amount you wish to loan, the loan duration, your repayment schedule, and the interest rate. Then, once you click calculate, you get an estimate.