F & I Guy

In addition to their fears of maintaining capital requirements and the unfolding worries of financial regulatory reform, lenders have growing concerns about establishing collateral values of boats and motors. They have been saddled with under- or non-performing loans across their product offerings from secured debt such as real estate to toxic credit card receivables. While they have received some help ...

Credit is too restricted, especially for small businesses, according to Ben Bernanke, the chairman of the Federal Reserve Bank, and he’s making speeches to get the word out. The marine industry has been saying the same thing for months, but such high level acknowledgement is a sign that change may be underway and now might be the right time to ...

Vitriol directed at the marine lending community may appear justified by businesses that have been curtailed or consumers with foreclosed loans on their boats. Yet the energy expended in the seething anger at specific banks, individuals, or trade associations could be better channeled by those throwing darts to remind the financial community that boating, though diminished, is here to stay. ...

Looking for a moderately bright spot in the boating industry? Try the marine insurance business. Policy retention is solid, new lines are being written in larger craft and new boats are being insured in higher percentages than in the recent past. Agents report business is steady, and in some camps up, and those working harder are gaining payoffs in high ...

Renting boats has been viewed by industry marketers as a way to expand public interest in the boating lifestyle. It fits the tried and true, “try before you buy” principle and gives people a way to go boating at a fraction of the cost of ownership. Today, another good reason for promoting rentals or “fractional yachting” is moving new boats ...

Floorplan funding, as the industry painfully knows, is in short supply and thus its cost is rising and borrower loan terms are becoming more stringent. The few sources that continue to provide marine flooring are looking to find ways to keep loans active and funds flowing. Meanwhile, industry and lending associations are working to urge federal policymakers to both broaden ...

There is a glimmer of growth and hope emerging in the marine finance market. The workers who lost positions when the credit bubble burst are finding their way back into the business they know and wish to serve. They are members of an industry talent and knowledge pool with experience to get things done – finding and carefully executing boat ...

Imagine how beneficial it would be if the boating industry had its own bank. Run by management knowledgeable about the idiosyncrasies of the market, manufacturing and retailing, funding needs and areas of opportunity and concern, bank clients could gain ready access and efficiency in obtaining loans for operations, inventory, capital improvements and their customers. Over time, clients would become valued ...

The great marine financing debate simmering at the end of calendar year 2008 had the industry divided into two primary camps. Marine bankers claimed adequate retail funding — though heightened standards — for consumers and reported that very few loans were coming through to consider. Sellers complained prospective qualified buyers couldn’t get loans even though they presented them to numerous ...

Ready availability of consumer and commercial credit has been undermined in the U.S. and with it the easy ability for boat buyers to obtain loans and marine businesses to gain inventory and operating finance lines. That said, the marine lending function can be rebuilt and reenergized in anticipation of growing boat purchases as the overall economy rebounds. The challenge lies ...