BOAT FINANCING
Boat financing simply means investing in the business
of owning a boat for money making purposes. Boats
comes in a variety of models. Once you know what you
want with the help of the boats buyers guide and
aware of the cost price, the next step is choosing a
boat lender. A boat lender is one who lends you money
to own a boat
Sounds weird right?
This is because we are only acquainted with the event
that takes place on land. We only confined a mindset
to the common things. People take buying bicycles,
tricycles over the four wheel automobile, either for
personal use or for commercial purposes of earning
money. But have you ever thought of owning a boat?
Owning a boat for a business purpose to the precise.
The money spent on buying very expensive cars can be
diverted to boat financing even though much money is
needed.
WHY IS BOTH FINANCING IMPORTANT?
Owning a boat has many rewards because of its
importance. Boats are used as a medium of catching
fish which are sold to fish sellers. So without a boat,
there will be no there will be a tragic reduction in fish
availability. Most advanced people prefer eating fish to
eating meats. Therefore, both in helps in the
availability of marine edibles. One can also own a boat
for this purpose
Boat plays a role in transportation to riverine areas
Advanced boats can be used for recovering petroleum
products.
Boats serves as a source recreational and adventurous
activity for people on a tour.
BOAT FINANCING VS CAR FINANCING
1. Loaning terms: For a car loan. the deadline for the
loan might be 36-months duration. This is a
timeframe for the payments to be completed. In
the case of abost loan, longer deadline of 10 to 25
years is acceptable.
2. Boat surety: Someone who promises to pay a sum
of money in the event that another person fails to
fulfill an obligation. Such a person ia also known as
a co-signer. In car financing or loan, the cosigner is
needed and the co-signer’s financial stability is
looked into. However, some boats lenders are
strict and whoever is buying a boat must qualify
individually. And there must be a 40% difference
between the buyers monthly income and monthly
debt payments.
USING A BOAT LOAN CALCULATOR
The process of buying a boat is really expensive
and most times the transaction is not cleared at
once. This is why you need a boat loan calculator
to help you estimate the payments of monthly
basis and additional interest for a boat loan. The
calculator does helps for estimation and decision
making regarding the boat models which is
affordable by you.
Sample of a boat loan caluculator
Source: [Link]
Both loan calculators is be based on
Debt to income: Here the bias monthly debt is
divided by the monthly income. This is used to
know if the buyer can pay his debt
Secured boat loan: Here the both standards a
collateral from the loan. A secured loan is
accompanied with a collateral home equity loan.
Home equity loan: Your house stands the
collateral for this type of loan. It is a very risky
loan and the interest rate is expensive.
HOW TO ACCESS BOAT FINANCING
To apply for both financing the presence of a
both lender is important. It can be done at a
bank application can also be done online. You
will also need to disclose the amounts you need
the boats model and your bio data including your
financial status. After which you wait for
approval. It's advisable to understand the terms
and conditions before signing in.
Banks involved in boots financing or loan
Company Starting Loan Terms
Interest Rate (range)
4 to 20
Bank of the West Best Overall 3.74%
years
Southeast Financial Best for Up to 15
3.74%
Bad Credit years
LightStream Best for Quick 24 to 84
4.29%
Funding months
Mountain America Credit
Up to 15
Union Best for In-House 5.49%
years
Financing
Source: [Link]
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