As specialists in marine financing, we know that a Secured Boat Loan is simply not the right, most suitable, or an achievable financing solution for all boat buyers. That’s why we provide a flexible solution with our Unsecured Boat Loans.
No-collateral boat loans can be an affordable and suitable option for many boat buyers. The reasons why an unsecured rather than a secured option is more suitable can be varied. It can be issues around using the boat as security, the buyer not having the collateral required, or a personal decision by the buyer.
Share boat scenarios, older boats, restoration projects, not wanting to use the vessel as security, or the vessel not being accepted by the lender are some of the main reasons. Whatever your reason, speak with us about unsecured marine financing at our highly competitive rates and flexible terms.
With all unsecured marine financing sourced individually, our expert brokers address the specific reasons and objectives of each of our buyers. Ensuring the unsecured boat loan is at the lowest rates we can obtain and with terms and repayments that suit the buyer. To discuss if unsecured finance for a boat is your best option, speak with us.
Unsecured marine financing is provided through a personal loan, without the boat or other assets, used as security against the funds borrowed. This differs from secured funding where the borrower uses the vessel as the collateral against the loan.
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As no security is provided, lenders assess and approve no-collateral boat loans based on the creditworthiness of the buyer and the ability to repay the loan. This involves a focus on the credit profile, history and score, and an assessment of income. A good credit score is required by lenders to approve these types of personal boat loans and to make the best interest rate offers.
As lenders do not have the security through collateral, unsecured finance attracts higher interest rates than secured finance. While secured financing is typically arranged with a fixed interest rate, unsecured personal loans are usually at a variable rate, but fixed rates can be available for some applicants.
Lenders may also apply limits to the loan amount and the terms, depending on income levels. A maximum lending limit is typically advised, based on the individual assessment of each application and ability to service the loan.
The type of buyers that no collateral boat financing may suit can vary. The boat may not be considered suitable security by the lender. This can be due to age and condition, or the value compared with the loan amount requested.
When purchasing a boat in a share arrangement, either through a share-boat business or with friends, offering your share as collateral for a secured loan is not an option. When a buyer makes a large deposit on their new boat and requires only a relatively small loan, they may not wish to have the vessel as collateral.
Some buyers have a preference for not having their assets committed as collateral for credit. Others may have a high credit score, but be asset poor. Another scenario suited to unsecured financing is when the buyer plans to pay off the loan prior to the end of a typical loan term. With variable rates and no break fees, an unsecured loan can provide a flexible funding option in these situations.
For a quote on boat financing without collateral to assist with your decision-making, contact us by phone or using our online systems.
Our guides offer quick comparisons and simple explainers to help you sail through the financing process with confidence.
Boat financing without collateral can provide many advantages for some boat buyers. Providing a workable way to achieve boat ownership, without the need for collateral. Solving a major problem for buyers purchasing boats that are not suitable security, or not available to be used as collateral, for whatever reason.
Compared with Secured Boat Loans, unsecured personal boat loans do attract higher interest rates. With rates varying across the vast consumer credit market, especially on unsecured products, finding the best rates can be a challenge. We assist boat buyers seeking affordable and flexible boat financing without collateral, by handling the entire process.
With our access to 80+ lenders, we deliver a key advantage – the most competitive rates from the lender that is a best-match with the profile of the boat buyer. With credit scores a major factor in getting approved for unsecured boat loans, and lender credit criteria varying across the market, finding the right lender is integral to the best rates and most flexible terms.
We cover the market without impacting the customer’s credit score. When an individual applies to multiple lenders to find the best offer, the process can impact their credit score. A situation which can be especially significant when applying for a lending product where a good credit score is critical.
We assign a broker to each customer and individually negotiate each loan to match the specific scenario and requirements of each buyer. With our specialists in marine financing handling the boat finance, buyers can enjoy the advantage of faster approvals, the best rates, and a time saving, hassle-saving solution that is sourced to suit them and their vessel. Terms are fixed and rates may be variable or fixed.
For the best rates on the unsecured marine loan that best suits you, request a quote today.
Unsecured boat loans are consumer credit with some of the eligibility criteria and application form information and details regulated by ASIC. These include being over the age of 18 years, having verifiable income, employment and residency, and providing details of financials, including debts and expenses.
Beyond the essentials, lenders have their own guidelines and criteria for eligibility and approval. Having a high credit score is very important, due to the lack of collateral with this type of credit product. Income levels are assessed when loan amounts are approved. A good level of income can contribute to higher loan limits.
Applying for boat financing without collateral is quick and easy with Jade Finance and with no collateral involved for assessment, approvals can be faster. Applications can be submitted over the phone or online, many receiving approval in 24 hours.
To check your eligibility for unsecured marine financing, speak with one of our brokers.
Not sure if unsecured marine financing is right for your purchase? Unsure if you will be approved? Understanding the factors that can impact approval may assist. Having a high credit score is extremely important for this type of marine credit. Buyers can obtain a copy of their credit report to review their position.
Income level is a critical factor as lenders assess income for the ability of the applicant to service the loan. Reducing debt levels prior to application may improve the personal balance sheet and prospects of approval.
Lender guidelines do vary across the consumer credit market. Connecting with the right lenders through Jade can be integral to getting approved for unsecured marine financing.
Speak with one of our brokers to clarify your situation with the issues that can impact getting approved for boat financing without collateral.
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THE COMPARISON RATE IS CALCULATED ON A SECURED LOAN OF $30,000 FIXED FOR A TERM OF 5 YEARS, NEW GOODS, EFFECTIVE 16/09/2024 AND SUBJECT TO CHANGE. WARNING: THE COMPARISON RATE IS TRUE ONLY FOR THE EXAMPLES GIVEN AND MAY NOT INCLUDE ALL FEES AND CHARGES. DIFFERENT TERMS, FEES OR OTHER LOAN AMOUNTS MAY RESULT IN A DIFFERENT COMPARISON RATE.
No collateral means a loan to buy a boat without the boat or other assets being used to secure the funding.
Secured loans use the boat as collateral while unsecured products do not require collateral. Interest rates are higher on unsecured loans, loan limits depend on income, and a high credit score is required.
A variable interest rate typically applies to unsecured personal loans. Variable rates can change with rate decisions by lenders.
To get approved for unsecured personal credit, applicants will need a high credit score and high income relative to debts and outgoings. Other consumer credit criteria and lender guidelines will also need to be met.
The term of the loan will be offered by lenders following an assessment of the ability of the individual to service the loan.
Many types of boats may be financed with unsecured loans.
An unsecured personal loan can be used to finance a share in a boat with other parties.
Where a vessel is not accepted as security for secured credit, buyers can apply for an unsecured personal loan.
The borrowing limit approved on unsecured credit is subject to lender guidelines and the ability of the individual to meet the loan commitment.
If a borrower fails to meet the repayment schedule of an unsecured loan and defaults, the lender is not in a position to repossess the boat as it is not the collateral for the loan. The lender will pursue legal action to recover the outstanding debt from the borrower.
