SELLER FINANCING FOR VESSELS
Marlin|June - July 2023
This can be a useful option in a vessel transaction where traditional funding can be difficult to obtain
RALEIGH P. WATSON, ESQ.
SELLER FINANCING FOR VESSELS

We often receive questions related to seller financing, the documents required, and whether it is a legitimate option in a transaction. There are often scenarios where banks and other traditional financial institutions are unable to provide a loan to a vessel purchaser, whether it be due to the type, age or usage of a boat, or perhaps the creditworthiness of a borrower. For example, it is more difficult to obtain a traditional marine loan for a 40-year-old wooden charter boat than a new production sport-fisher to be used purely as a recreational vessel. As a result, we are regularly engaged by clients involved in unique scenarios who wish to draft a customized seller-finance package.

THE SAME PROCESS

The reality is that a buyer and seller can arrange financing in the same manner as if a traditional lender is involved, with the seller having the same basic rights and the buyer with the same legal obligations. Of course, the difference is that a seller is fully funded at closing by a lending institution but only partially funded through a seller-financing transaction, the amount of which depends on the terms of the parties' agreement.

THE DOCUMENTS

Denne historien er fra June - July 2023-utgaven av Marlin.

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Denne historien er fra June - July 2023-utgaven av Marlin.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.