Q: How long does the marine / yacht financing process take?

A: Newcoast is dedicated to ongoing development of systems that make the loan process easy and efficient. This question can be answered based on the amount that you are looking to finance. On an average, loans under $150,000 a decision will be made the same day or within 24 hours. For larger loans and transactions that require additional income documentation you can expect a decision within 24 to 48 hours.

Q: What type of boat/yacht loans can Newcoast finance?

A: We can finance the following transactions:

• Pleasure Craft
• Limited and Full-Time Charter
• Houseboats
• Full-Time Liveaboard
• Multihulls
• High Performance
• Steel Hulls
• Offshore and Corporate Structure

Q: Why should I choose Newcoast for my vessel financing?

A: . Newcoast is the leader in innovative solutions to fit many different financial situations.
. We consistently offer the most competitive rates and terms in the industry.
. Our skilled team of internal financial underwriters will ensure that your loan is placed with the bank that best fits your financial needs.
. All loan applications are individually analyzed. We do not "shop" a customer's information.

Q: Can I pay off the loan anytime without a prepayment penalty?

A: Many banking institutions in the recreational financing industry charge prepayment penalties depending on the type of loan structure that you choose. As a rule of thumb, the maximum prepayment penalty that a bank will charge is $200, however most banks will allow principal reductions without penalty.

Q: How are loan funds disbursed?

A: Depending on who you are purchasing the boat from will determine how funds are disbursed. The most common scenarios are the following:

1. Boat Broker: Using a boat broker is very helpful in the marketing of a vessel and can assist as a third party for funds disbursement. In most cases we will fund the proceeds from the loan directly into the brokers escrow account. From there the broker will wire transfer these funds to the seller. These funds along with your down payment will equal the agreed purchase amount of the vessel.

2. New Boat Dealer: A transaction in a new boat dealership is handled much like the boat broker transaction. The main difference is that the funds wired from the loan are not wired to a seller, as the dealership owns the boat.

3. Private Party: Although the private party transaction is a normal occurrence here at Newcoast, many individuals are confused because there is no buyer or seller representation by an authorized agent. In the same way as the dealer or broker transaction, you will give a deposit / down payment to the seller based on the agreed purchase price. We will send them the remainder of the funds in the form of a wire or certified check.

Q: How much of a down payment do I need?

A: Depending on the purchase price of the vessel, you will typically find the following down payment requirements here at Newcoast:

Loans $25,000 - 150,000 10% Down
Loans $150,000 - $300,000 15% Down
Loans $300,000 - $1,000,000 20% Down
Loans $1,000,000 and up are individually structured.

Q: Can you explain United States Coast Guard Documentation?

A: Sure, this information comes directly from the American Vessel Documentation Association. Although this information is a great overview of the Documentation topic, it may not cover all of the aspects of a case by base scenario.

Q: What is Vessel Documentation?

A: Vessel Documentation is a federal form of vessel registration which is offered only to United States citizens for vessels of 5 net tons or more. Pleasure vessel owners can choose either state registration or Vessel Documentation. However, commercial vessels measuring over 5 net tons must be documented. The Coast Guard issues a Certificate of Documentation to each qualifying vessel. This instrument provides conclusive evidence of the vessel's nationality, as well as clearly identifying the vessel name, hailing port, measurements, and ownership information.

Q: What are the benefits of Vessel Documentation?

A: Many vessel owners enjoy the ease of clearing the various foreign ports when carrying a Certificate of Documentation. A federally documented vessel is not subject to an annual renewal fee. In addition, some vessel owners value the privacy of marking the documentation number on the interior of the hull, rather than having a registration number marked on the exterior of the hull. In a financing situation, many lenders prefer that the vessel be documented in order to secure their interest with a Preferred Ship Mortgage.

Q: Does the vessel's name need to be unique?

A: No. You may choose any name for your boat as long as it does not rhyme with "MAYDAY" or is considered profane.

Q: What is a Hailing Port and how do I choose one?

A: Hailing Port is your choice of city to be marked on the vessel. You can choose any city in the United States as prescribed in the U.S. Dept. of Commerce's Federal Information Processing Standards Publication 55DC. You must display it on the outside of your vessel in compliance with prescribed instructions.