Purchasing a yacht is seen by many as the ultimate statement of wealth. These luxurious vehicles enable you to travel the world in style, take clients on unforgettable business meetings, and make a profit from your investment by chartering the vessel.

However, speaking to lenders that sell superyachts and getting the best deal for your circumstance is often difficult, time-consuming and expensive. But Hectocorn’s Yacht Finance options can help you join the elite club of superyacht owners.

Purchasing a super or mega yacht is only viable for ultra-high-net-worth individuals due to the significant cost involved. For example, in 2021 the average price of an 80-foot-plus boat was $7 million, according to Boats Group data. But we typically see megayacht or superyacht vessels costing anywhere from $20 million to $200 million. And this figure is only going up, as the Boats Group insight found the value of all vessels increased by 54.3% from 2019 to 2021.

Therefore, buying a vessel will likely require yacht finance. However, purchasing a yacht on finance should not be considered making it more affordable or “putting it on credit.” The risk lenders take means it requires the purchase to be highly affordable for a buyer, even if they’re using yacht finance. Typically, you’ll need to prove ownership of assets, sources of income, and a level of wealth that far surpasses the value of the yacht you want to purchase.

Yacht finance deals vary based on the circumstances. The process of buying a second-hand yacht is similar to a traditional loan. The lender agrees to give you an agreed sum of money to purchase the vessel, and you make regular interest-added repayments over a specified period.

But financing a new build superyacht can be more complex. A lender will typically release finance in stages to pay off each part of the vessel build, which needs to be verified and certified in advance. You’ll also need to structure the payment to protect against bankruptcy or litigation if any construction issues arise.

Unlike other significant purchases, such as real estate or a supercar, it’s unlikely that a lender will allow you to use your yacht as collateral for the loan. Yachts are technically depreciating assets, so lenders usually demand assets under management (AUM). In other words, they will likely want additional collateral to secure against your vessel, such as sizeable personal or business assets.

Lenders will be laser-focused on your ability to purchase a yacht, including your level of wealth and the diversity and liquidity of your assets. They’ll also consider where you’re from, where the boat will be based and require you to fulfil contractual agreements that cover the loan. For example, loan-to-value ratios tend to come in around the 50% mark alongside AUM. Lenders are also likely to want to understand your previous yachting experience to assess your eligibility for buying, operating, and maintaining a vessel.

Yacht finance usually uses fixed-rate repayments, which protects buyers against changes in interest rates throughout their loan. The rate you receive will depend on your profile, income, other assets you own, the size of the yacht, and your overarching level of wealth.

Another important consideration is the additional costs on top of the fees required to purchase a yacht. Running costs, including hiring a crew to manage a large vessel, are likely to cost around 10% of the boat’s value annually. But these aren’t covered by yacht financing, so you need to be comfortable covering them on top of the repayments.

Individuals rarely own yachts; it’s more likely via a corporate structure, which is more financially efficient and simplifies hiring a crew and paying value-added tax (VAT). Yacht finance lenders loan money to the corporate entity that acquires a vessel, but you must provide personal guarantees like access to accounts or assets.

When purchasing a mega or superyacht, in particular, buyers enter a long-term business partnership with their lender. Yacht finance is repayable over several years, so lenders will be heavily involved in the repayments, requiring regular updates and oversight of your financial position. Therefore, buying a yacht isn’t a case of finding a boat and purchasing it outright. It involves complex elements and you need a transparent ownership structure before your purchase can be considered.

Furthermore, the loan agreement will be highly detailed. Lenders will want to know your nationality, where the vessel will be registered and moored, and what you plan to do with the boat to understand how to structure your finance plan. For example, if you plan to use the yacht as a chartered vessel, lenders may allow you to borrow more as it’s likely to generate an income – and may require a percentage of any income to go towards repayment. But if the yacht is for private use, lenders may require additional guarantees.

Hectocorn has access to hundreds of specialist yacht lenders, enabling you to negotiate the best yacht finance deal possible. Get in touch now to discuss your plans and discover how we can structure your personalised yacht finance.

Hectocorn’s yacht finance expertise helps you avoid the complexities of purchasing a luxury vessel. We’ll help you get the best yacht finance deal that works for your specific situation.


Every aspect of a yacht finance agreement must be personalised to ensure you get the best package possible. Hectocorn analyses your background to understand how your situation might appeal to lenders and assesses vital information like the type of yacht you’re looking to purchase or commission, how much you need to borrow, and the repayment periods you require.

It’s vital to be able to negotiate the right yacht finance deal. But the process requires expert insight and experience in the nuances of yacht finance. Every part of the deal is negotiable, particularly if you have substantial assets and business interests or a high profile. We have the contacts you need to broker an agreement with the right lender and ensure you get the rates and terms that best meet your requirements.

Additionally, yacht finance deals typically come with subtle details that it’s crucial to get right. So choosing the right lender is vital to ensuring you get the maximum enjoyment from yacht ownership.