Glossary

Annual interest rate – calculate your interest

The annual interest rate shows you your total yearly costs, factoring in your total yacht or boat loan and the term you have selected. When financing a yacht or boat, the annual interest rate helps you compare different offers with each other and obtain the best loan for your desires and needs. Use our online finance calculator to calculate your individual annual interest rate when purchasing a yacht or boat.

Boat and yacht finance

Generally the word ‘finance’ refers to a boat loan. These loans are the classic option for financing boats and yachts. They are suited to private individuals (consumers) as well as entrepreneurs involved in chartering.

The way these loans are designed is straightforward: you pay off the loan progressively and your boat or yacht acts as security. In addition, we specialise in boat loans with long terms, which means that our loans are particularly helpful for preserving your capital.

Using our enquiry form, you can find out how you can put together and request a yacht loan adapted optimally to you personally using the Go Boating finance calculator.

CGI Finance and SGB Finance representatives in Europe

CGI Finance and SGB Finance, the specialists for financing yachts and boats, new or used, are based in and operate from France. However, thanks to their official representatives, they are present in four additional European countries too. As a result, they can offer solutions for financing yachts and boats for international clients based in these countries.

Chartering out your boat

To finance your dream of having your own yacht, chartering offers itself as another way of funding your yacht or boat purchase. The charter company you select is particularly important for this. Does the charterer have sufficient experience? Do the booking and boat handover procedures work? Are the boats maintained in perfect condition?

Company clients can select a term of up to seven years while private clients can select up to twelve years.

If you, the person obtaining this financing arrangement, do not establish a GmbH company to charter your boat, you will continue to be considered a consumer even if you use it commercially. This entitles you to consumer rights and means you can benefit from the extended terms of our consumer loans, which have a positive effect on your annual financial figures thanks to the low payments required.

As a rule, Go Boating allows you to charter your yacht or boat. 

Commencement of agreement

Our agreement with you will take effect when you sign the financing application after a credit check and the finance company, SGB Finance or CGI Finance, accepts it in writing.

When signing an agreement to finance a yacht or boat, Go Boating guarantees you a cooling-off period of 14 days during which no funds are disbursed.

Compagnie Générale de Location d'Equipements

Compagnie Générale de Location d’Equipements (CGL), based in Marcq-en-Barœuel, France, is a financing specialist for boats and yachts. CGL is a subsidiary of the internationally active banking group Société Générale. The company has financed the purchase of yachts and boats for over 40 years and, under its CGI Finance brand, has been the official partner for Bavaria, Brunswick, Dufour, Fountaine Pajot, Hanse and Princess. Since being founded in 1999, SGB Finance – a joint venture between CGL and Bénéteau – has been in charge of yacht financing for all Bénéteau Group brands.

Cooling-off period

The consumer cooling-off period prescribed by law is 14 days from the date the agreement commences. During this period, you may cancel the financing agreement without giving reason. For this reason, SGB Finance and CGI Finance cannot disburse your loan until this period has ended. Section 355 of the German Civil Code (Bürgerliches Gesetzbuch, BGB) governs this in detail.

Documents required before pay-out of a consumer loan

Normally Go Boating must have received the original copies of the following documents by the time a consumer loan or boat loan is paid out:

   
  • The loan agreement
  • A SEPA direct debit agreement
  • Confirmation of down payment
  • Self-enquiry form
  • A yacht insurance policy
  • An invoice or purchase agreement
  • The request to pay out the loan
  • The dealer's request for payment ('Closing Statement')
 

Depending on your file, there may be further documents required before payment of a consumer loan.

Documents for the credit check

Go Boating can only approve a credit agreement after conducting a successful credit check. However, we do not usually need to obtain credit records from SCHUFA for this. For our credit check we will normally need the following documents:

We will only ever view your personal documents and not act on them in any other way; they will be treated as absolutely confidential. You can therefore send your documents to us fully free of obligation or risk.

Down payment/minimum down-payment

At Go Boating, loan agreements are characterised by low minimum down payments of no more than 30 per cent of the purchase price. Using the Go Boating finance calculator, you can calculate online an annual interest rate based on your freely selected deposit and put together a plan to finance your yacht or boat that is optimal for you.

Enquiry form

To obtain an application package for a yacht loan or boat loan, please complete the enquiry form we provide or request a consumer loan that you have designed with our online finance calculator. Go Boating must first conduct a credit check for your loan application. You can see what documents are required for this under Documents for the Credit Check. If your check comes back as creditworthy, Go Boating will need some further information along with the purchase agreement for your yacht, new boat or used boat so that we can disburse your consumer loan. You can find a complete list of the documents required under Documents for Disbursing a Consumer Loan. As soon as Go Boating has all the information it needs, there will be nothing standing in the way of the financing plan for your sailing yacht or boat.

By signing the loan application, you will not yet be committing to borrowing funds. The agreement for your yacht loan or boat loan only takes effect when CGI Finance and SGB Finance accept the application in writing and thereby grant the loan. The team at Go Boating will be happy to help you at any step of the process.

Financing used boats

The models are still modern and the teething issues have been dealt with: young, used boats continue to grow in popularity.

Go Boating has products to reflect this trend too – we would be delighted to finance your used boat or yacht. However, there are a few limitations in place to keep everyone happy: the age of your boat plus the term of your loan, for example, cannot exceed 20 years. In addition, your credit provider may request a valuation, which also adds extra protection for our clients.

If you decide to finance a used boat, the nature of the purchase agreement for your used boat plays a key role – whether you have signed it with a dealer or a private individual. When you purchase a boat from a dealer, you benefit from professional advice and, moreover, a warranty period of at least one year, while if you agree to purchase a used boat from a private individual, you normally will not have any warranty at all.

Mortgage lien as security

In legal terms, a ‘mortgage’ is technically a potential form of security that you pledge when taking out a consumer loan. You can learn more about this type of security for your loan and the form of security suitable for obtaining finance for your yacht or boot here.

Partnerships

CGI Finance and SGB Finance, the specialists for financing yachts and boats, new or used, maintain a number of cooperation agreements, some of them in effect for many years now, and each of them based on mutual trust and positive experience in working together. These partners include, among others, these groups of companies: Bavaria, Bénéteau, Brunswick, Dufour, Fountaine Pajot, Hanse und Princess Motor Yacht Sales.

Prepayment penalty

If you make unscheduled payments or repay your loan early, the lender will be entitled to request a reasonable prepayment penalty. For consumers with a boat loan or consumer loan where a security has been pledged, this penalty may not exceed one per cent of the amount repaid early. Sections 500(2) and 502(1) of the German Civil Code (Bürgerliches Gesetzbuch, BGB) govern this in detail.

Purchase agreement

A purchase agreement generally provides written evidence of the sale of an object and the associated change in ownership. Regardless of whether it is an agreement to purchase a yacht or purchase a new or used boat, the purchase should always be recorded in writing so as to provide evidence of it. New owners of the boat or yacht can prove ownership with the purchase agreement, while the vendor can prove that he or she is not responsible in any way for any costs incurred as ownership has changed. However, it is important that the transfer of title is also governed in writing. You can take care of this by adding a clause to the purchase agreement or handover record.

Ship certificate

Go Boating usually has yachts and boats recorded on the Hamburg Register of Maritime Vessels (Schiffsregister). Only new boats with a purchase price of less than €150,000 are exempt from the registration requirement. Yachts and boats should be registered immediately after purchase.

A ship certificate entitles you to sail under the flag of your country. However, the purpose of ship registration is not only to identify the nationality of your ship, but also to provide evidence of boat and yacht ownership.

Ship registration

At the same time your boat loan is disbursed, your dealer will send all the documents required to record your boat on the ship register directly to our partner – the law firm Uhsadel Rechtsanwälte. If the documents for your boat or yacht are in order, the firm’s specialist, Dr Tietjen, will commence the process to register it with the Hamburg Register of Maritime Vessels (Seeschiffsregister). You will receive proof of the application in the form of a preliminary statement. On request you may also receive an allowance of use from the owner stating your right to use the vessel until the end of the financing contract. Please keep both these documents on board.

Société Générale

Founded in 1864, Société Générale enjoys a long corporate history. Today the banking group employs 146,000 people and looks after more than 30 million private and corporate clients around the world, including for yacht financing (figures current as at the end of 2018). Engagement, responsibility, team spirit and innovation are the values that shape both the internal and external work of Société Générale.

Term of contract / maximum term of contract

Extended terms for your loan in connection with flexible termination rights and modest prepayment penalties result in a low capital commitment for you. Go Boating generally ensures that you can decide on an individual term that suits your needs perfectly.

For yacht loans, you can select a term between three and twelve years. Exceptions can be granted to extend the term of a yacht or boat loan to up to 15 years.  

The general effect of a long-term yacht loan is that you can keep your monthly payments very low. Using the Go Boating finance calculator, you can obtain an online, individual finance plan and calculate an annual interest rate based on your freely selected term and individual down payment. 

Value added tax rate

The value added tax rate plays a key role when financing yachts, new boats and used boats. With purchase agreements for used boats, people frequently encounter a problem whereby they cannot provide proof of the applicable EU VAT ever being paid for the boat. However, Council Directive 92/111/EEA provides that all pleasure boats used within the European Union and commissioned after 1 January 1985 are required to display such evidence if requested by customs authorities.

You can submit various documents to prove that this tax was paid. One option, for example, is the original purchase agreement for your used boat including a note of the VAT paid. Another accepted option is confirmation from the tax office or other government bodies of having later paid tax on your used boat. Should you not possess these documents for your used boat, transport and customs documents as well as documentation from the suppliers and manufacturers of your used boat will also be accepted as long as they show that the applicable EU VAT has been paid.

The applicable VAT is also dependent on the mooring of your used boat. If your boat or yacht is located outside of the EU when you purchase it, EU VAT will not need to be paid for it until it is imported. 

Ways to secure a loan: conditional bill of sale vs mortgage

There are two ways to secure a consumer loan or boat loan so that it can be disbursed.

If a conditional bill of sale (Sicherungsübereignung) is used to secure a loan, title is temporarily transferred so that the lender becomes the boat’s owner until the financing arrangement ends. This form of security is frequently used when purchasing movable goods as it is quick and does not cost much. This method still allows the borrower to effectively possess the yacht or boat directly and use it while repaying the loan for it. If a conditional bill of sale is used, the boat is recorded on the ship register under the lender’s name.

The second option for securing a boat loan is a mortgage, in the legal sense of the word. With this option, you, the borrower, will be the owner of the boat being financed right from the start. However, you will be required to pay for a notary public when you declare your submission to potential enforcement orders as part of this. This form of security involves the lender acting as a creditor with a lien (a ‘mortgage’) on the property (i.e. the boat) being financed. This claim is for the amount of the loan and recorded in the ship register. Ship mortgages are popular outside of Germany for large yachts and charter yachts with moorings.

Yacht/boat/consumer loan

At Go Boating, you can finance your boats and yachts with what is called a ‘consumer loan’. Consumer loans are loans provided specially for private individuals. Regulators assume that banks and finance providers benefit from greater knowledge in comparison to private individuals. Because of this, they grant these consumers particularly strict protection and special rights when signing a boat loan. Our credit providers have taken these regulations as an opportunity to emphasise these rights even further, with early termination options, transparency, early repayments and low prepayment penalties standard for all Go Boating consumer loans.

Using our online loan calculator, you can find a yacht loan or boat loan that suits your personal desires and needs. You can choose a term between three and twelve years and monthly payments for your consumer loan calculated in relation to your invested capital of at least 30 per cent. Boat and yacht loan approval is always dependent on a prior credit check.

The terms and conditions of your consumer loan can be adapted to your changing needs at any time so that you can remain flexible even if you obtain finance or a consumer loan.

Yacht insurance

Every credit provider requires you to have insurance for your boat or yacht. After all, the vessel being financed acts as security for your loan, and your credit provider needs you to keep your yacht or boat in a faultless condition.

CGI Finance and SGB Finance have a successful partnership with Pantaenius, a yacht insurance specialist, though you can also choose your own insurance broker. The only thing you need to make sure of is that you have an individual offer prepared for you and that it matches your needs and requirements. To finance a yacht or boat, CGI Finance and SGB Finance only require that you obtain comprehensive insurance.

Comprehensive insurance provides protection for any damage or danger that your yacht experiences. You should also make sure that your yacht insurance pays for appraisals, transport, storage etc. in addition to covering theft, mast damage, collision etc.

Comprehensive insurance also covers your liability for any damage you cause to other yacht owners with your yacht or boat.

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