Debt Advisory

Various types of vessels can be financed such as Tankers, Bulk Carriers, General Cargo and Container Ships, Ferries, Cruise Ships, Yachts etc.

Funders generally look for the age of the vessel to be less than 20 years old as this affects the value, operational lifespan, and residual risk.

Other important factors include tonnage, class, flag, builder and previous owners.

Various options are available such as period charters, liner service and spot market. Each option can be explored and requirements will vary by lenders. Most will restrict trading to and from sanctioned countries.

Lenders want assurances of stable income and trustworthy partners.

There are options you can consider, first debt vs equity. Then the purpose - is it for working capital, trade finance, acquisition finance, asset finance, etc.

The vessel will be mortgaged to the lender and act as collateral, however sometimes a corporate or personal guarantee can be required.

You will need insurance which includes Hull & Machinery and P&I cover from recognised insurers. Depending on how and where the vessel operates you may also need war risk and other special purpose cover, all of which are vital for lender security when evaluating funding.

Most lenders tend to back strong operators or sponsors with proven expertise.

Yes. Audited Accounts, P&L Statements, cash flow forecasts and management accounts will be required.

Vessel specific revenue model, charter income, operating costs demonstrating sufficient profit to service the debt.

Yes, borrowers will need to provide independent market valuation reports as well as condition reports, Classification records, Docking surveys and details of any recent refits. All are relevant to a funder considering financing a vessel.

You will need to provide an ownership structure chart as well as details of the vessel's intended commercial and technical managers. Full bio’s of all UBO’s and their domicile will be required