Lending Query
A Belgian national, needing urgent finance to purchase a brand new yacht. We were approached at a late stage in the buying process by a client who had been let down by his existing lender, with whom he had financed 2 previous yachts with. He needed 65% loan to value and had already committed 20% towards the purchase price upon exchange of the vessel.
Client Circumstances
The borrower worked across Europe as a corporate finance broker and had been a yacht owner for many years. He has sufficient income to support the loan with a good track record of borrowing against yachts. The client indicated that the vessel would be moored in Monaco and therefore spend most of its time sailing in the Mediterranean.
Problems to Solve
The client’s regular lender was UK based and had suddenly changed their lending criteria in response to the COVID 19 pandemic and therefore declined providing funding to non-UK nationals. This presented a unique challenge and the team therefore decided to approach a French lender due to the clients nationality and the location the vessel would be moored. The yacht was also built in a Turkish shipyard, meaning most European banks would apply slightly higher risk towards funding these, as opposed to yachts built in well known European shipyards.
Solution Provided
Silver Oak Capital was able to place this deal with a French yacht lender>/strong> with a strong appetite for European nationals and who were also familiar with the Turkish shipyard which built this line of motor yachts.
€5.3 million EUR finance lease
65% Loan to Value
83 Monthly Installments
7 Year Term
Full Repayment with no Balloon
1% Bank Fee