Here are some finance tips and answers to frequently asked questions.
Most institutions will loan money on a boat for a maximum of 5 years. One way of softening the repayments is to have a "baloon" payment at the end of the loan. Lets say you want to borrow $50,000. You could ask to baloon $15,000. So you would have to pay off $35,000 over the term of the loan and then make a once only $15,000 payment at the end. You could then choose to make an application borrow another $15,000 and roll the loan over for another 3 years. This in effect makes the loan go over 8 years. Ask you finance consultant for more details.
If you make a finance application to any institution give them full disclosure. If you have had late or default payments on loans declare it at the time of application. This will strengthen any application.
If you are slef employed the chances are that the lender will ask to see your most recent tax return. Having it at hand at the time of your application will make the process even quicker.
Q. Can I negotiate on the rate?
A. Yes. The best way to do this is to submit your application first and gain your approval. Ask what the approved conditions are and then go back and see if you can get a better deal.
Q. Can I pay my loan off early?
A. Yes. It is common that there are early discharge fee's. Some companies charge very small sums and others are much larger. Ask your consultant BEFORE you sign your loan.
Q. Can I borror money for a boat for personal use in a companies name?
A. Unlikely. This is a complex question that has many taxation and legal implications. If you own a company and you wish to borrow money for a boat in tis name you should seek professional financial and taxation advice.
Q. What is the normal interest rate?
A. Interest rates vary primarily on two things:
1. The prevailing market conditions at the time of the loan.
2. The risk that the financier percives that they are taking in granting the loan. This includes:
A. Your past credit history.
B. The security on the loan.
C. Your ability to service the debt.
Q. Can I insure my loan?
A. Generally yes. There are a wide variety of debt insurance schemes available form reputable firms. Ask you finance consultant to assist you.
Most institutions will loan money on a boat for a maximum of 5 years. One way of softening the repayments is to have a "baloon" payment at the end of the loan. Lets say you want to borrow $50,000. You could ask to baloon $15,000. So you would have to pay off $35,000 over the term of the loan and then make a once only $15,000 payment at the end. You could then choose to make an application borrow another $15,000 and roll the loan over for another 3 years. This in effect makes the loan go over 8 years. Ask you finance consultant for more details.
If you make a finance application to any institution give them full disclosure. If you have had late or default payments on loans declare it at the time of application. This will strengthen any application.
If you are slef employed the chances are that the lender will ask to see your most recent tax return. Having it at hand at the time of your application will make the process even quicker.
Q. Can I negotiate on the rate?
A. Yes. The best way to do this is to submit your application first and gain your approval. Ask what the approved conditions are and then go back and see if you can get a better deal.
Q. Can I pay my loan off early?
A. Yes. It is common that there are early discharge fee's. Some companies charge very small sums and others are much larger. Ask your consultant BEFORE you sign your loan.
Q. Can I borror money for a boat for personal use in a companies name?
A. Unlikely. This is a complex question that has many taxation and legal implications. If you own a company and you wish to borrow money for a boat in tis name you should seek professional financial and taxation advice.
Q. What is the normal interest rate?
A. Interest rates vary primarily on two things:
1. The prevailing market conditions at the time of the loan.
2. The risk that the financier percives that they are taking in granting the loan. This includes:
A. Your past credit history.
B. The security on the loan.
C. Your ability to service the debt.
Q. Can I insure my loan?
A. Generally yes. There are a wide variety of debt insurance schemes available form reputable firms. Ask you finance consultant to assist you.