Finance Leasing Insights at Superyacht Investor London

On March 26th, St Julian’s Maritime Finance (SJMF) will be participating in the Superyacht Investor Conference in London, a pivotal event for those in the industry, to discuss the evolving landscape of alternative financing, particularly the growing prominence of finance leasing.

This conference, which has been running since 2016, is a vital meeting point for the industry's key players, from brokers and shipyards to financiers and legal experts. With over 215 senior-level attendees, Superyacht Investor London provides a platform for networking and knowledge exchange. We, at SJMF, recognise the importance of these connections cannot be underestimated, as they deepen collaboration and informed decision-making.

A key focus of SJMF’s contribution is the exploration of opportunities for alternative financiers. In our session "Opportunities for Alternative Financiers: Competing with Private Banks," Willem Steenkamer of SJMF will join Chandler Rierson of Bay Point Advisors and Richard Liao of Chailease Finance, moderated by Alasdair Whyte of Superyacht Investor, to delve into the nuances of this dynamic market. The discussion will address critical questions such as: Is there a viable market for finance leasing? What are the advantages of alternate yacht debt? And how can alternative financiers effectively compete with traditional private banks? These enquiries reflect the real-world challenges and opportunities faced by individuals seeking to finance their yacht dreams.

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The SJMF Approach to Finance Leasing

We understand that traditional private bank financing, while established, may not always align with the specific needs of yacht buyers. This is where finance leasing emerges as a compelling alternative. Our financial lease product is designed to provide a streamlined and accessible pathway to yacht ownership, particularly for those seeking finance between €500,000 and €1,500,000 on yachts up to cost value of €3,000,000.

It's also important to note that St Julians Maritime Finance offers Operating Leases for yachts up to €20 million. This expands our ability to serve clients with larger acquisition needs, providing a comprehensive range of finance solutions beyond the scope of our finance leasing products.

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Our approach is built on clarity and simplicity. The yacht is purchased by St Julians Maritime Finance Ltd (the Lessor), and at the commencement of the lease, the economic ownership is transferred to the user (the Lessee). This structure allows for immediate use of the yacht, whether for private or commercial purposes. Legal ownership remains with the Lessor throughout the lease term, providing a secure framework for both parties. Upon completion of the lease and payment of the purchase option, full ownership is transferred to the Lessee.

We offer finance leasing options for both new and pre-owned yachts, with flexible lease terms ranging from two to seven years and equal monthly rentals. This predictability allows for effective financial planning. Typically, we require a down payment of 30% to 40% (maximum Loan-to-Value ratio of 70%) and offer a purchase option (final balloon payment) of 10% to 30%.

Download our financial lease terms here.

Benefits

Higher Funding: The benefits of asset-backed lending are manifold. One of the most significant advantages is the ability to unlock greater amounts of funding than might be available through conventional financing. This scalability is crucial for individuals pursuing ambitious yacht projects.

Greater Flexibility: Furthermore, our finance leasing offers exceptional flexibility. Unlike some traditional financing options that come with stringent financial covenants, our approach provides greater freedom in how the funds are utilised. This adaptability is particularly valuable in the dynamic and often unpredictable yacht market.

Faster Access: Speed is another key differentiator. Assuming eligibility, funding can be provided within four weeks. This efficiency is essential for clients who wish to seize opportunities without unnecessary delays.

Retained Control: Crucially, asset-backed lending allows clients to retain control and equity. By leveraging the value of the yacht itself, clients can secure financing without relinquishing ownership stakes. Additionally, our finance leases can be used in conjunction with other financing tools, providing a comprehensive and tailored approach.

Stable Payments: The stability offered by fixed repayment terms allows for clear and predictable financial planning. This stability, coupled with the ability to improve cash flow by using untapped assets, makes our finance leases a safe choice for yacht buyers.

Find out where else we’ll be via our events page.

Join Us at Superyacht Investor London

At Superyacht Investor London, SJMF aims to engage with industry professionals and potential clients, highlighting the advantages of our finance leasing solutions. We recognise that acquiring a superyacht is a significant investment, and our goal is to provide a transparent, efficient, and client-focused financing experience.

We invite attendees to join us at the conference to explore the opportunities presented by alternative financing and to discover how we can help you navigate the reality of yacht ownership. Whether you’re a seasoned yacht owner or a first-time buyer, we are committed to providing the financial expertise and support you need to achieve your aspirations.

We empower clients through transparent communication, educational support, and personalised financial solutions. Unlike rigid bank loans, we aim to demystify financial leasing, ensuring clients understand every aspect of their agreement. We offer tailored leases, adapting to individual needs and cash flow, and provide comprehensive guidance on asset-backed lending versus traditional routes. This client-centric approach fosters control and autonomy, allowing clients to leverage yacht value without relinquishing equity, and granting them the flexibility to decide on full ownership at lease end. We look forward to connecting with you at Superyacht Investor London and discussing how our financial lease solutions can make your yacht dreams a reality.

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