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Thread: Boat Financing

  1. #1
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    Default Boat Financing

    I've been looking at financing options for a commercial vessel. Most of the big banks... FNBA, Wells Fargo, etc... have short term loans which skyrocket your payments.

    CFAB is a pretty good route to look at, and I talked with the State... they can't help much because revolving loan funds for comm fish vessels are limited. I know that the State can refinance a loan after 1 year with another institution, but that doesn't get rid of that first enormous payment.

    Has anyone gotten financing for a cf vessel through other means? Ie, an agricultural bank or national marine fisheries financing? I don't expect free money... I know that the interest is going to be significant, but a 12-15 year loan with 6-7% interest is a whole lot better than 7 years at 7-9%... makes a difference of about 20 grand a year in payments.

  2. #2
    Member DMan's Avatar
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    Have you talked to AK USA? I have never had issues getting a 12 year note through them on private boats.
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  3. #3

    Thumbs up Ak usa

    They've always beat the competition for loans.
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    Member Ebbtide's Avatar
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    Credit Union 1 beat USAA (believe it or not). I did a head to head with them in April and USAA would not even match CU1. That was on a personal boat loan though not a commercial loan.
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    Member AK20's Avatar
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    Quote Originally Posted by Ebbtide View Post
    Credit Union 1 beat USAA (believe it or not). I did a head to head with them in April and USAA would not even match CU1. That was on a personal boat loan though not a commercial loan.
    Had a similar situation, Credit 1 was 5.15% as opposed to USAA's 5.65%, AK USA was close to 7% and Denaili Alaskan (my own bank!) at 8%. Needless to say I went Credit 1, all these banks loaned out to 15 years at least by the way. Also this was a month ago so no telling what the current rates are at now.

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    Member ACBMAN's Avatar
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    Three years ago when I got my boat went to see what insurance was going to cost at State Farm and ended up getting my loan with them also,at the time it was 4.29% on a 4 year loan.

  7. #7
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    Well, good news... Alaska USA does finance CF vessels, but Credit Union 1 does not. I think that the next time Alaska USA could be a really good route, they offer financing up to 500K... not that I can get or afford that much, but it's good to know. If anyone else ever needs the info, it's called a "marine mortgage."

    CFAB ended up fitting the bill a little better this go around, so I'm continuing on with them. Thanks to everyone who responded, I did chase down the leads.

  8. #8
    Sponsor potbuilder's Avatar
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    What fishery are you thinking of getting into?? I once had a loan with Farm Credit for a boat.

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  9. #9
    Forum Admin Brian M's Avatar
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    Good info, Burton. I've been looking hard at getting up to 20,000lb of area 3A halibut IFQ. The prices right now are making me a bit gun shy, but it's something I really hope to do within the next few years. I'm already a member of AK USA, so I guess that's where I'll start when the time comes.

  10. #10
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    For IFQ's go through National Marine Fishery Financing... 6.15 % & 15 years

    I'm trying to find a decent seiner... got the permit, need a boat.

    I have a bowpicker for sale too by the way

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