Used Vessel Purchase Loan.
As the industry changes, you may be interested in a larger or even a smaller vessel. Have you found a used vessel you know would work for you? We can help you purchase it. We look at the current condition of the vessel and set the useful life. Loans are set to be repaid over that period.
Used vessels are repaid over their remaining useful life. After an inspection, we assist in setting the repayment period from 1-20 years. A combination of age and vessel condition are used to determine the length of the loan. The goal is to make the used vessel affordable for you.
The repayment schedule can also be tailored to fit the cash flow for your business: Semi-annual or annual repayment schedules are common to match your fishing season. In some cases, interest-only payments can be arranged for certain periods of time.
A client can select fixed-rate full-term financing with interest rate stability for the full amortization of the loan. Or they can assume some interest rate risk and benefit from the three fixed-term rates available with the selected amortization period. The three term rate periods of 3, 5, and 10 years allow a client the opportunity to potentially have competitive rates during the selected term. At the end of the term the rate is reset based on current interest rates at the time of renewal.
A Marine mortgage over the used vessel is the primary security for the loan. The mortgage claim is registered with Transport Canada. Additional security over fishing licenses is taken through a General Security Agreement. A notification of a financial arrangement with a lender is acknowledged by the Licensing department with Fisheries and Oceans Canada.