Commercial Boat Loans
Commercial Boat Loans, also known as a Boat Chattel Mortgage, provide businesses with an effective way to finance a new or used boat for commercial use. Moreover, businesses of all types—whether sole traders, partnerships, trusts, or corporations—can secure a loan using this option. The business immediately owns the boat at the start of the agreement, while the boat itself serves as collateral for the loan.
Eligibility for Commercial Boat Loans
To qualify for a commercial boat loan, applicants must have an ABN. The boat or motor vessel must be used for business purposes, meaning it must generate income. Proof of income can be provided through BAS, bank statements, tax returns, or a simple income declaration. Some lenders may also request an accountant's letter confirming that the boat is for commercial purposes. GST registration is particularly advantageous for more expensive boats. Additionally, being asset-backed or owning property can strengthen the loan application. For business owners who are both GST registered and asset-backed, a Low Doc Loan option is available.
Advantages of a Boat Chattel Mortgage
- Up to 100% finance, no deposit loan for approved customers.
- GST registered customers can claim the GST portion of the purchase price.
- Potential tax benefits such as claiming the interest on the loan and depreciation of the boat (please check with your accountant).
- There is no GST charge on the monthly chattel mortgage repayments.
- No or Low establishment fees and monthly fees with no pay out penalties.
- Terms from 1 to 7 years.
- Fixed interest rate.
- Fixed monthly repayment schedule.
- Boat loans from $5000 to $1,000,000.
- Balloon payments of up to 50% are also available.
Apply for a Commercial Boat Loan
Call one of our AAA Marine Finance Specialists today on 07 5493 1222 to get your business on the water tomorrow!
Or make a online enquiry and one of our friendly team members will be in contact with you shortly.
When applying for a business loan for a boat you typically need to provide the following documents:
- Proof of identity which includes Australian drivers licence and Medicare card.
- Current ABN details.
- Proof of income. Low doc commercial boat loans are also available to GST registered, asset backed business owners.
It is important note that each lender differs in their specific requirements.
Boat Loan Finance Calculator with Balloon Option
Our boat loan mortgage calculator includes a balloon payment option. Balloons of up to 50% can be included in your boat chattel mortgage facility. A balloon payment is a lump sum due at the end the the loan term. By including a balloon in your loan facility you can reduce the monthly repayment amount. You can also decrease the monthly loan repayment by increasing the term, up to 7 years.
Useful link | National Standards for Commercial Vessels
Stay informed with the latest updates from The Australian Maritime Safety Authority on Marine Order 504, which outlines requirements for certificates of operation under the National Law. This resource ensures compliance for safe and lawful vessel operations, taking effect on 1st June 2025.
