Seller’s finance offers alternative to bank financing
ZIEST, The Netherlands — Ciris Capital and AKD Advocates, a law firm specializing in shipping and finance, recently introduced YachtNote seller finance service, a form of finance where the seller lends to the buyer part of the sum the buyer needs for the purchase of a yacht. At the time of the exchange, part of the purchase price is being paid and part financed for later repayment.
The seller will obtain the same type of security for the loan a bank would otherwise have: a first preferred mortgage on the yacht, assignment of insurance payments, and, in case the yacht would be commercially operated, assignment of the income, according to a recent press release from YachtNote.
To protect both parties, the sale is to be correctly documented, including details outlining the portion of purchase price that is financed, commercial interest charged by the seller, and any negotiated repayment plans.
Because the seller is not a bank, seller’s finance exists only to facilitate the sale of a yacht the buyer could not otherwise afford.
Seller’s finance may be a way to bring grease in the financial market, YachtNote’s company website explains. It may facilitate the selling of a yacht which otherwise would not be possible.
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