Do you live in the coastal region where boating is part of the culture, or you have an adventurous mind that seeks to explore the ocean?
The easiest way to live your dream at your convenience is to have a boat. Nothing beats sailing with your family on a summer day, the captain of your little enterprise. There is only one thing in the way of this happening, and that is money. A boat, even the small-sized one you need for you and your family, is still a considerable expense. But it is not unattainable if you use the right financing based on your budget and current financial conditions. You can buy your boat with a boat loan; you just have to let the right people help you along the way.
What is a boat loan?
There is not much difference between a car loan and a boat loan, except what you are using either to acquire. Getting the right boat loan depends so much on the process. While the idea of submitting an application and the whole process looks simple enough, a lot could go wrong if you don’t have the financial know-how needed to negotiate the best deal for yourself. But you don’t have to bother yourself trying to get all the financial knowledge, you can just come to us at Finance Guide, and we will help you work out the most favourable loan deal you can get.
Types of Boat Loans
There are various kinds of boat loans provided by both traditional and non-traditional lenders. Each loan type is tailored to suit the lifestyle and budget of a potential borrower, based on the size of the boat they wish to get. However, while boat financing products may be numerous, they all fall into two broad categories of secured and unsecured loans. Both loan types have their pros and cons which would be discussed below so you can have an idea.
- A secured loan is a loan that comes with security; this means that there is collateral attached to the money you are being lent. This collateral is usually an asset of equivalent or higher value to the money you are borrowing and where the borrow defaults on payments and loan conditions, this collateral is used to cover the cost. There are times when the purchased boat itself is the collateral for the loan.
A secured loan has its advantages which include lower interest rates since the collateral has already mitigated the risk. Also, a secured loan is open to more borrowers, even those with a low credit score or poor credit history. Since the risk of default is well covered with the collateral, borrowers with faulty credit can still qualify for the loan depending on the lender. The application process for a secured loan is also faster and much more straightforward.
- An unsecured boat loan does not require any security. However, this type of loan comes with more restrictions in terms of qualification and loan terms with a more stringent application process, and the interest rates are usually higher. A common type of unsecured loan is personal loans, which is one of the most preferred forms of financing for people seeking to buy a boat. At Finance Guide, we partner non-traditional lenders that offer personal loans to customers at rates that surpass what you will get from any traditional funding source.
Using a personal loan to finance your boat purchase has a lot of advantages which include:
- It is unsecured, which means you don’t have to use any asset as collateral. The loan is given solely on your income, ability to repay, and creditworthiness.
- It is one of the best options for financing a loan purchase. The loan usually comes with competitive terms, flexible repayment options, favourable interest rate, and sometimes, a balloon payment option that lets you pay off the entire loan at once before the end of the term.
- You are in full control of your boat purchase when you use this loan option; you just have to get loan approval after which the money is sent to your account. Negotiation with boat dealer or whoever is selling you the boat is a personal choice. Thus, you can both used and new boat using this financing option.
Why You Should Let Us Help You
Getting your boat loan through Finance Guide ensures that all the financial aspect of your boat deal is adequately taken care of. We are dedicated to providing quality services, and we fully live to this ideal in everything we do. With our boat loan services, you get
Access to multiple boat lenders
Experienced team working to ensure you get the best deal
Excellent advice on all your financial dealings throughout the life of the loan.