Key Recreation Lending adds to yacht buyers’ lending options
CLEVELAND – Key Recreation Lending’s Luxury Yacht Lending division, a unit of Cleveland-based KeyBank NA, has introduced three new financial programs for yacht buyers: letter of credit, construction loan, and balloon note, the company reported in a statement today.
“We’ve continued to diversify our yacht lending options so we can fully meet our customer’s needs for attractive financing alternatives that complement personal investment and financial planning strategies,” said Grant Skeens, president and CEO of Key Recreation Lending.
According to John Relyea, national direct sales manager, “In this market, clients value service and products that ease all aspects of the transaction process, and the ability to access a variety of flexible financing solutions is vital.”
The letter of credit program, a financing tool for the construction and import phases of a new yacht purchase, allows for easy transition into permanent financing, according to the company. Features of this program include: letters of credit available starting at $500,000; standard terms up to 24 months or more; interim financing available while the yacht is being transported to the United States; and an assortment of end loan options including fixed and variable rates, interest only and LIBOR options.
The new yacht construction loan program “is ideal for clients interested in maximizing their assets while taking advantage of competitive interest rates with minimal out-of-pocket expenses,” said Jim Velez, KeyBank Luxury Yacht Lending manager. Loans of $500K or more for terms up to 24 months, or longer in selected cases, are available with a 25 percent down payment. Interest rates for this program are typically tied to the 30-day LIBOR index, the company added. As with the letter of credit program, the new yacht construction loan program allows for easy transition to a full assortment of end loan options including fixed and variable rates, interest only and LIBOR options, stated KeyBank.
The new balloon note program provides a fixed rate for the first five or seven years, and then a balloon payment. Clients take advantage of a discounted rate on a 20-year term loan, with a five- or seven- year balloon provision.
“When you consider the fact that the majority of yacht clients trade or sell within three or four years, the value of this option becomes apparent,” explained Velez. This program is available for loan amounts of $250,000 or higher.
- For more of the latest news, click here.
