Boat finance in South Africa can be a good way to pay instalments for your craft of choice and get you on the water. Whether it’s for leisure or commercial purposes a boat is not a cheap asset to own. Therefore many banks in SA provide loans for marine transport in the same way that they offer vehicle finance. Similarly, terms and conditions apply to boat finance that apply to borrowing for other vehicles.
Lenders in South Africa are increasingly making boat finance available for private leisure as well as commercial use.
Boat Finance for leisure craft
- Wesbank Leisure Asset Finance
- FNB Leisure Vehicle Finance
- Yonda Leisure Finance
- Nedbank Leisure Finance
- Absa Leisure Finance
- Capitec Leisure Finance
If you have bad credit your application at these lenders is less likely to be successful. So you might have to borrow money from cash lenders. However, this should always be your last choice because the interest rates are higher and the risks are greater.
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South Africa is lucky to have two oceans to sail on. Which explains why many up and coming people are seeking boat finance and loans for water craft so that they can get out on the open seas.
Banks in SA include ABSA, Standard Bank, Nedbank, First National Bank and Capitec and some of these offer boat loans, whereas others do not.
It is normally easiest to approach your regular bank first. Because if they reject you or think you have a bad credit history you can approach other credit providers as an alternative.
Commercial Boat Finance in South Africa
Commercial boat finance is more difficult to come across. Because usually these craft are a lot more expensive than the leisure boats. Therefore you need to borrow more.
What we recommend if you are looking for commercial boat finance is to apply for an asset loan from Absa.
Absa Bank in South Africa have a specific department that offers affordable vehicle and asset finance that caters for people in business.
They can offer expert advice on what kind of finance you can qualify for to buy a commercial boat. As well as flexible terms on your repayments.
You can visit the Absa vehicle and asset finance webpage here.
For example if you have a fishing business and you need to buy a new vessel then they can offer you a commercial fishing boat loan.
Private Boat Financing
Private boat financing is just another term for leisure finance. You can research the companies we mention above if you are looking to finance a private boat.
If you are keen to get out on the ocean, you can also try renting a boat (though often this is also incredibly expensive).
It’s not always easy to borrow money from cash lenders. However they might be an option for you if you are looking for private boat loans.
What if you have a Low Credit Score?
Obviously if you have been blacklisted or have a low credit score you are less likely to qualify for boat finance. Because vessels are expensive. So you will be viewed as a risky candidate by lending institutions.
Cash lenders rarely have sufficient cash for purchases as large as these. So it is best to sort out your finances before you consider incurring further debt. Then you can apply at the banks such as Absa, FNB, Capitec or Nedbank.
To summarize we have learnt that leisure finance is easier to get than commercial boat finance in South Africa.
Therefore if it’s a private boat you are looking to borrow money for go to one of the lenders we mention at the beginning of this article.
If it’s commercial boat finance you want to apply for, use Absa as we mention. Or another major bank in South Africa that offers asset finance to help you pay for your new boat.