A yacht is a significant purchase — one that requires considerable knowledge in both the acquisition and financing processes. Whether you're searching for the right craft, constructing a new one or having your current yacht refitted, the marine division at U.S. Trust can help you achieve your objectives with a customized credit solution aligned with your ownership structure and cash flow. We have helped hundreds of clients acquire substantial vessels and can offer you the benefits of this experience.
Working with the marine-finance specialists at U.S. Trust, you can benefit from:
- In-depth knowledge of the marine industry
- Financing solutions designed around your needs
- All the resources of one of the most respected financial institutions
CONSULTATION AND GUIDANCE
Our marine specialists are focused and seasoned veterans. Their experience in both customized marine financing and addressing the intricacies of the purchasing process provides them with an understanding of the key players in the marine market, including builders, brokers and surveyors, as well as legal, insurance and other industry professionals. And we have an in-depth knowledge of the product offerings in the marine market.
We can work with your tax and legal advisors as your specialized consultant to guide you through the process of purchasing and financing your yacht. We understand that buying a yacht should be a pleasure, and we want to help you move seamlessly through your buying experience.
A resource for first-time buyers — Our specialists will walk you through the process, from registration, tax and insurance issues to ownership and loan structures. Where appropriate, we will refer you to the industry professionals who can provide you with the guidance you will need to make informed decisions on these important issues.
We also can pass on valuable insights we have gained from helping other clients. These insights can help you decide whether to buy an existing yacht or construct a new one, whether to offer your yacht for charter, and how to handle crew issues.
Structuring an appropriate loan — Just as a yacht reflects your lifestyle, so should its financing structure. Our specialists will talk with you about your unique financial needs to help determine a loan structure that works for you. With customized repayment options, loan terms and amortization schedules, we offer considerable flexibility in how to structure credit. Alternatives can be simple or more sophisticated, including risk management strategies.
Registering your yacht — Many of our clients choose to register their yachts in a foreign jurisdiction. The reasons are many and include tax considerations, crew hiring and estate planning issues. Our goal is to help ensure that you have all the information you need to make the decision that best fits your needs.
Building a custom yacht versus buying a completed yacht — Construction projects require an added level of knowledge, which few lending institutions possess. We provide construction financing for many of our clients, and will be able to share multiple perspectives with you based upon our knowledge and years of experience working with clients, shipyards, surveyors and brokers.
At U.S. Trust, our marine specialists have assisted clients on financing projects in the United States and abroad. We've visited many shipyards, so we have a firsthand understanding of the construction process and special considerations involved in building a custom yacht. We've participated in financing projects ranging from small in size to very large, multimillion-dollar projects.
We also can provide information on managing currency risk,
offering solutions such as multicurrency loans.
CONSIDERATIONS AND RISKS
- Customized lending solutions involve special risks and may not be appropriate for all clients.
- Customized lending solutions may be subject to additional credit and legal approval.
- Clients should consult with their independent attorney, tax advisor and investment manager before implementing any financial, tax or estate planning strategy.
- Clients should also consider their portfolio diversification requirements, time horizon, risk tolerance, debt tolerance, tax situation and any cash flow and appreciation objectives they may have.
THE RESOURCES OF A LEADER
In addition to customized marine financing, U.S. Trust offers access to sophisticated credit capabilities and a depth of resources, experience and capital strength that few financial institutions can match. The critical dimension we bring to this relationship is a high level of personal service, because you work with one knowledgeable specialist who seeks to ensure that your credit strategy effectively complements the rest of your wealth management strategy.
Our marine financing product offerings include traditional term loans for the purchase of new or preowned yachts, refit loans, bridge loans, construction loans and cash-out loans. We work with you to identify a loan structure to help meet your financial needs.
Neither U.S. Trust nor any of its affiliates or advisors provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Credit facilities are provided by Bank of America, N.A., Member FDIC, its subsidiaries or other bank subsidiaries of Bank of America Corporation, each an Equal Opportunity Lender. All collateral are subject to credit approval and may require the filing of financing statements or other lien notices in public records. Asset-based financing involves special risks and is not for everyone. When considering an asset-based loan, consideration should be given to individual requirements, asset portfolio composition and risk tolerance as well as capital gains, portfolio performance expectations and investment time horizon. A complete description of the loan terms will be found in the individual credit facility documentation and agreements.
Bank of America, N.A. and U.S. Trust Company of Delaware (collectively the "Bank") do not serve in a fiduciary capacity with respect to all products or services. Fiduciary standards or fiduciary duties do not apply, for example, when the Bank is offering or providing credit solutions, banking, custody or brokerage products/services or referrals to other affiliates of the Bank.