There are many financing options available, however, if a bank funds your superyacht, they will want to know lots of information about you, the builder and the superyacht. They will also want to knowwhere the superyacht is and where it goes. AT A GLANCE There are a number of reasons that people choose to use finance, including funding either the purchase price of a pre-owned superyacht, the refinancing of a superyacht you already own, the purchase price of a new build superyacht, the construction price of a new build superyacht or the cost of refit works. It is common for banks to expect you to put 30 to 50 per cent of your own money into the project before they will contribute. Even if the finance has been approved, it is common for an extensive list of documents and actions to be completed before any money is paid out. The bank will ask for any number of legal and tax opinions, which you will have to pay for. Is the superyacht structure lawful and typically recognised for superyachts sailing into EU territorial waters? Are all requirements for non-EU structures complied with? What might be the tax implications? The bank will want to see evidence of the borrower’s (and any other party providing security) authority to enter into the documents in the form of resolutions of the directors of the company and perhaps also the shareholders and evidence of the authority of any signatory to sign documents on behalf of such company in the form of a power of attorney. If there is a mortgage to be registered over the superyacht, the flag state will have its own requirements in relation to any notarisation or legalisation of a power of attorney. The company entering the loan agreement should have the sole purpose of acting as owner and operator of the superyacht being financed and should hold no other assets.
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