Parties requiring a yacht financing facilities are those normally buying a yacht for personal use as a second home on the water. Many yacht owners have the capital to buy in cash but choose not to, because financing a yacht through a facility allows you to keep your capital deployed in higher-yielding investments rather than sinking it into a depreciating asset. It is a tool for liquidity management and a specialist area. At Temple Solutions Consultancy we work with providers of solutions who are soley focused on the marine sector.
Marine Finance
Marine Financing
The purchase of a superyacht is one of the most significant lifestyle investments an individual can make. It is also one of the most complex asset classes to finance. Unlike real estate, a yacht is a movable asset that crosses borders, tax jurisdictions, and legal frameworks. Temple Solutions Consultancy specialises in securing our clients’ bespoke, tailored yacht finance for high-net-worth individuals (HNWIs) and corporate entities. We are active across the entire Western European market, facilitating introductions to our specialist partners who focus on transactions in the hubs of the Mediterranean such as Monaco and Puerto Banus.
A yacht funding facility is a secured loan used to buy or refinance a yacht, where the yacht is the collateral. Due to the high value and mobility of the asset, these are sophisticated financial instruments that function more like private banking facilities than standard loans with distinct marine-specific legal and practical frameworks. There is also typically a strong element of cross-border complexity inherent in yacht mortgages. A typical transaction might involve a British Ultimate Beneficial Owner (UBO) looking to finance a yacht built in Italy, berthed in the South of France, and flagged in the Cayman Islands.
If you intend to charter the yacht commercially (to offset running costs), you need a lender who permits commercial use. Not all marine mortgages allow for chartering – we source specific “commercial registration” mortgages that support this business model.
The lender will usually require the boat to be registered in a Tier 1 jurisdiction (e.g., Red Ensign Group like Cayman Islands, Isle of Man, or Malta). This is important because it affects how the mortgage is registered and the lender’s enforcement strength. Working with our specialost lenders operating in the Marine space our team can assist our clients in structuring a road map to successfully secure their requirement. While Temple Solutions Consultancy assist with the structuring requirements our partners focus on providing the most cosy affective solution for the asset purchase or refinance.