We have an in-depth understanding of the issues facing our clients in yacht finance. We have the expert knowledge to provide you with a full support service in yacht finance.
To manage the risk, timing, structure, viability and cost of banking or finance transaction, potential pitfalls should be proactively identified at an early stage. We provide commercially-focused legal advice in yacht finance and lending matters. We understand that to be effective financial legal advisers, sound market knowledge and a solutions-driven approach to problem solving are essential to help clients achieve their business goals and objectives.
There is an old saying: the ideal borrower is one who doesn’t need to borrow any money. You, as a borrower, may have plenty of assets but very little available cash. Or, with the low interest rates offered, you may feel that you can make a better return on the money by keeping it in your business or existing investments. If you opt for financing, the lender will present you with his requirements, set out on a term sheet. It will set out the amount to be lent, repayment terms and details of any security required.
In yacht finance practice, our job is to understand your goals and to provide you with advice on the proposed terms. We can then negotiate the lender’s terms on your behalf. They set out what you have agreed to do and the consequences of any breach. It is important to get them right.
To ensure that you fulfil your obligations, the lender will want to be able to take over the yacht and other assets as security, should you fail to comply. There will be agreements to maintain the yacht, insure the yacht, comply with the terms of the insurance and any flag state obligations on the use and enjoyment of the yacht. We can advise you on all of these aspects relating to yacht finance.
Super yachts are usually owned by a company of which you are the owner or director. Even if the yacht is not technically owned by you, you will be asked to act as if you were the borrower. You will be asked to provide a personal guarantee to the lender. This can put all your assets at risk if the owning company defaults on the loan.
In yacht finance practice, we work with both lenders and borrowers. We understand both points of view.
We can also help you with: