Can the Shipowner or Broker Finance My Ship Purchase or Charter?

It is one of the first questions we hear from buyers and charterers of cruise ships, ferries and passenger vessels: will the shipowner, or QPS Marine Ships, provide the finance? The short answer is that QPS Marine Ships is a broker, not a lender, and shipowners only occasionally agree to finance a sale. Most buyers arrange their own funding, and the good news is that there is plenty of it available.

Where ship finance comes from

Bank lending to shipping now exceeds US$300 billion worldwide. The main sources open to buyers of passenger ships are ship-finance banks in Europe, Japan, Scandinavia and Greece; Chinese and Japanese leasing companies, which buy the ship and lease it back to you; government export credit agencies, mainly for newbuildings and major refits; the US Maritime Administration's Title XI loan guarantee for US-built or US-reconditioned vessels; Nordic bonds and private credit funds; and, for older ships, seller finance or a bareboat charter with an option to buy.

What lenders want to see

Expect to show a business plan and route, your track record as an operator, equity of typically 30 to 50 percent of the price, a valuation of the ship, its class and survey reports, and insurance. Younger ships and experienced operators get the best terms; older tonnage is usually financed by private credit, leasing or the seller.

How we help

We supply the specifications, class records and valuation information that lenders ask for, and we can introduce you to finance brokers. For a fuller guide, including the names of the major ship-finance banks, lessors and export credit agencies, see our Ship Finance guide. This post is general information, not financial advice.