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THE YACHT FINANCING PROCEDURE

Marine Project is official partners of CGI Finance and SGB Bank, two banks dedicated exclusively to global yacht finance.

Step 1: Sample Quote financing a boat

You create a personalized sample yacht-quote through our online yacht financing calculator or request one through our contact form. If you contact us via email or telephone, we are happy to assist in this matter.

Step 2: Yacht-Credit Check

The credit assessment starts as soon as you decide on a suitable sample quote and you send us the necessary documents. What is needed for the credit assessment is detailed in the other two documents attached hereto. The credit decision by the finance company should only take a couple of days assuming all information is available to them.

Step 3: Conclusion of the Contract

You will receive your contractual documents shortly after your financing request has been approved by the finance company. Please send the signed documents back to us via e-mail and via mail in their original form. You will then receive an acceptance from the finance company concluding the contract.

Step 4: Payment

The finance company will then disburse the financed sum after the cancellation period of 14 days has elapsed, subject to receipt of all necessary documents. Delivery of leased boats will take place in France.

Step 5: Security and Boat Registration

Your loan will be secured by either a mortgage or a transfer of property. All used boats and new boats costing more than €150,000 will need to be registered in the Hamburg Ship Registry by our partner – Uhsadel Rechtsanwälte.

Step 6: Flexibility of the contract

A loan enables you to adjust your monthly payments or make partial or full loan repayments at any time. The maximum fee for consumers when repaying their loan early is 1% of the amount repaid. Subject to an agreement between lessor and lessee, leasing contracts can also be amended during the run.

Step 7: End of Financing

At your request, the consumer credit contract can be cancelled very easily. The maximum fee for consumers will be 1% of the outstanding credit sum. Your leasing contract may also be cancelled or transferred to a third party, with the agreement of the finance company. At the end of the credit with transfer of property or at the end of the lease following payment of the purchase option, the financed boat will become your property.

Boats you can finance

I. Boat

  1. Serienboote
  2. Gebrauchtboote; Maximales Bootsalter: 15 Jahre; Bootsalter und Vertragslaufzeit sollen 20 Jahre nicht überschreiten
  3. Length: max. 23,99m
  4. Preis: max 4 Mio EUR netto (max. Finanzierungsbetrag: 2 Mio EUR)

II. Contract languages

1. German
2. English
4. Italian
5. Spanish

III. Countries / Customers

1. Belgium
2. Germany
3. France
4. Italy
5. Luxembourg
6. Netherlands
7. Austria
8. Portugal
9. Spain
10. UK

IV. Flags

1. German
2. French
3. Italian
4. Spanish
5. UK

V. Financing

1. Deposit min.30% of the purchase price
2. Duration 4 – 12 years
3. French Leasing: delivery of the yacht in France before the lessor pays

Boats you can NOT finance

I. Boat

1. One-offs (own construction, special orders, former work boats etc.)
2. Prototypes
3. Pure regatta yachts
4. speed boats (motor boats)
5. Boats over 24m in length
6. Boat price over 4 million EUR net
7. Boats under construction (Stage Payments)

II. Customers

1. Customers with bonus documents in languages outside II. / III.
2. Companies (exception: established charter companies)
3. SPVs (special purpose vehicles)
4. Straw women / men: people who secretly want to finance for others.

III. Financing

1. Company leasing
2. Refinancing
3. French leasing for boats not sold by a dealer (KYP); SPVs and private sales are excluded.

FAQ – Consumer Yacht Credit

What is the smallest possible down-payment?

  • 30% of the purchase price incl. VAT. The down-payment will be made directly to the boat dealer.

What is the longest possible duration?

  • 12 years. In exceptional cases 15 years may be allowable.

Is the interest rate fixed throughout the duration of the loan?

  • Yes

Will there be an additional balloon payment at the end of the loan?

  • No, except if you explicitly ask for one. Please note: balloon payments are only available with a maximum loan duration of 7 years.

Is it possible to finance used boats through CGI Finance as well?

  • Yes, CGI Finance finances used boats up to 10 years of age.

How can I keep the monthly rate down?

  • Through a long duration. Of course, CGI Finance pays attention to low interest rates. But a long duration is the deciding factor in keeping the monthly charge low.

Why should I choose a long duration even if I plan on changing the boat in a few years?

  • A long duration will keep the monthly charge low thus allowing you to invest less capital in your boat throughout the year. In this way you maintain financial flexibility and keep capital for other purchases and expenditure. These advantages in combination with a maximum early repayment fee of 1% are good arguments for long duration finance. On request, you can terminate the loan or make a partial loan repayment at any given time.

Am I already legally bound by my signing of the credit application?

  • No, there is a legal requirement of 14 days revocation period. This revocation period only starts upon receipt of the written acceptance by CGI Finance.

Are partial loan repayments possible?

  • Yes, any time and without limitation regarding the amount. 1

May I cancel the contract at any given time?

  • Yes

Do partial loan repayments or early termination cost me a lot of money?

  • No, the additional costs amount to only 1% of the paid off sum.

What collateral do I need to provide for the loan?

  • In general, the boat is the only security needed.

How does the provision of collateral work?

  • In most cases, through a simple transfer of title. CGI Finance then registers the boat in the Ship Register in Hamburg, Germany in its name. The costs must be paid by you.

Do ship registration costs incur for all boats?

  • Up to a purchase price of € 150.000,00 incl. VAT CGI Finance may forgo ship registration, meaning no further costs for you. However, this is only possible for new boats.

What other costs are to be expected?

  • No further fees are payable to CGI Finance when arranging the finance.

How does the boat need to be insured?

  • CGI Finance requires that you take out a liability insurance as well as a comprehensive insurance. CGI Finance works with Pantaenius but you as a client are free to choose your insurance company.

May I charter out my boat?

  • Yes

Are other flags possible?

  • Yes, on request. CGI Finance also finances clients in France, Spain, Italy, and the UK. CGI Finance would be pleased to offer financial solutions for international clients residing in these countries.

FAQ – French Yacht Leasing

Who can benefit from the French leasing scheme?

  • Clients that seek to reduce the value-added tax. Please note: The yacht has to be delivered in France personally to the client.

How is the VAT calculated?

  • The French Yacht leasing is based on a flat-rate taxation of the lease instalments at a rate of 50% of the French VAT rate. At present (July 2016) VAT on lease instalments is 10%.

How high are the total costs?

  • That depends on the chosen lease duration and down-payment. At 50% down-payment and 5 years duration the total costs of the lease are currently just below the gross purchase price of your yacht. Financing of your yacht is virtually free of cost.

Which boats are eligible for French leasing?

  • All boats which have no EU VAT paid status are eligible – all new boats and in exceptional cases used boats. Also your boat has to be able to leave EU-waters being moored close to the coast and equipped with radio and a life-raft.

Do I have to prove that I have left EU-waters?

  • CGI Finance requires a general annual statement from you confirming that you have left EU-waters. There is no obligation to prove single journeys.

Are EU-taxes paid on the yacht from the beginning of the lease?

  • Yes

What is the legal basis of the French leasing?

  • The EU Directive 2006/112/CE as amended by the Directive 2008/8/EC relates to VAT applicable to the provision of services and the place of supply of these services. The rules confirm that for the long term hiring of pleasure vessels by E.U. consumers, VAT on lease instalments will be subject to the French VAT regulations if the vessel is put at the disposal of the lessee in France. This rule is stipulated as well in the German Tax Code (see §3a (3) 2. 4. Satz UStG). The French tax regime set out in the provisions of Section 259 A 1 of the General French Tax Code and Section 172 of Annex 11 thereto state that VAT is payable on lease instalments accordingly to the amount of time spent in E.U waters. If the vessel is sea-going then, under the provisions of the French Administrative Regulation 2 3A-1-05 of 24 January 2005, VAT on lease instalments will be charged at 50%. Legal entities will pay VAT on lease instalments at the rate determined in the country in which they are established.

Is the leasing contract drawn-up in German according to German law with a German flag and possible berth in Germany?

  • Yes

How high must the down-payment be?

  • Between 30 and 50% of the purchase price incl. VAT. The down-payment has to be paid directly to the dealer of the yacht.

Which durations are possible?

  • You can choose any duration between five and twelve years. In exceptional cases fifteen years may be possible.

How can I keep monthly rates low?

  • Through a long duration. Of course, CGI Finance pays attention to favorable conditions. But a long duration is the deciding factor in keeping the monthly charge low.

Why should I choose a long duration even if I plan on changing the boat in a few years?

  • A long duration will keep the monthly charge low thus allowing you to invest less capital in your boat throughout the year. In this way you maintain financial flexibility and keep capital for other purchases and expenditures.

Am I already legally bound when I sign the lease contract?

  • No, there is a legal revocation period of 14 days. This revocation period starts only upon receipt of the written offer acceptance through CGI Finance.

Are other flags possible?

  • Yes, on request. CGI Finance also finances clients in France, Spain, Italy, and the UK. CGI Finance would be pleased to offer financial solutions for international clients residing in these countries.

Are partial lease repayments possible?

  • Yes. However, they may not exceed leasing limits and have to be requested individually.

May I cancel the contract at any given time?

  • Yes, you may settle the lease contract early but this will lead to additional costs. Instead you may choose to transfer the leasing contract to a third party. This third party – given the prior check of creditworthiness – takes over all rights as lessee thus protecting the VAT advantage.

What happens at the end of the lease?

  • You may choose to make use of your purchase option thus ending the contract.

What happens at the end of the lease?

  • You may choose to make use of your purchase option thus ending the contract.

What collateral do I need to provide for the lease?

  • In general, the boat is the only security needed.

How does the provision of collateral work?

  • CGI Finance registers the boat in the ship register in Hamburg, Germany in their name, the costs of which are paid by CGI Finance.

Do I need to pay administrative fees?

  • No

How does the boat need to be insured?

  • CGI Finance requires you to take out a liability insurance as well as a comprehensive insurance. CGI Finance works well together with Pantaenius but you as a client are free to choose your insurance company.

May I charter out my boat?

  • Yes, but not with crew.
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