Case Study- Boat Finance

The client is self-employed in the construction industry and was seeking finance to fund the purchase of a boat for private use. The boat was new and including engines and trailer was $190k and the client was seeking finance for the total purchase price. The transaction was a buyback as the client had already paid the supplier however the actual purchase took place more than 90 days earlier so finding a financier who was prepared to consider this type of transaction was critical.

boatWhilst the applicant is self-employed this transaction was a consumer transaction and therefore income verification was a key element to securing approval. Boat finance is only offered by a select few financiers and because it was also a buyback transaction one financier, a major bank, was the only financier who was prepared to look at the transaction.

The client was financially strong however at the time of submitting application his 2013 financials both business & personal were not completed however we were able to supply MYOB reports. Initially the lender was reluctant because actual financial information was not available however we were able to supply repayment history on his home loan plus proof of savings history and combined with MYOB reports we were able to meet the lender’s income verification criteria and the transaction was approved.

From the date the client approached us to actual settlement was less than 7 days which greatly assisted the client by having the total funds back in his account so quickly enabled him to explore other business opportunities.

Although the transaction was a buyback transaction the lender still viewed the Boat as new and therefore was prepared to offer the client a 30% balloon over a 60 month term however the client elected the nil balloon option. The rate was very competitive considering the finance was on a boat and a buyback transaction.

This transaction provides clear evidence of a financier willing to work with a client even though the time frame was outside their standard criteria. The client was very happy and as a direct result refinanced his $500K + personal mortgage with the lender.

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