Site icon Investabill – Official website for Investabill

Merchant Vessel Financing

Merchant Vessel Financing Trade Credebt

Credebt® helps companies around the world purchase merchant vessels in a variety of types and sizes from cargo and container ships to tankers and bulk carriers. We are currently financing seven ships and are in the process of acquiring vessels for two more of our clients. One involves a general cargo ice-class vessel that meets our client’s requirements for shipping between the cold-water ports of Sweden to warm-water ports in Europe and the Middle East. Another client requires financing for a container ship to provide general and refrigerated cargo transport for their customers in the Persian Gulf. We facilitate these types of acquisitions by partnering with our clients to buy the ship outright or we help them refinance a lien-free ship that they already own to raise capital towards the purchase of the vessel.

Purchasing merchant vessels can offer numerous advantages for businesses in the shipping industry. By owning your fleet, you have more control over the logistics of your operations, allowing you to optimise routes, schedules and cargo capacity to maximise efficiency and profitability. Additionally, owning cargo ships can provide more flexibility and reliability compared to relying on third-party shipping companies. You can ensure that your cargo is transported according to your specific requirements and timelines, reducing the risk of delays and disruptions. Purchasing a merchant vessel involves several steps and considerations beginning with understanding the type of vessel your business requires.

The main types of vessels we have financed include:

1. Bulk Carriers which are designed to transport unpackaged bulk cargo such as grains, coal, ore and cement
2. Container Ships carry standardised cargo containers
3. Tankers are designed to transport liquid cargo, including crude oil, refined petroleum products and chemicals
4. General Cargo Ships carry various goods packed in bags, boxes, crates, barrels or pallets
5. Roll-On/Roll-Off (Ro-Ro) are for wheeled cargo such as cars, trucks, trailers and railroad cars
6. Refrigerated Ships (Reefers) transport perishable goods like fruits, vegetables, meat and fish

It is also important to consider the size, tonnage and cargo capacity required for your operations as well as the age, maintenance history and condition of the vessel. Finally, you will need to understand the costs involved including purchase price, registration, inspection and potential reactivation costs.

Financing the purchase of a merchant vessel allows you to spread the cost of the vessel over time, preserving cash flow for other operational needs, investments or unforeseen expenses. By not tying up large amounts of capital in a single purchase, you maintain liquidity to manage day-to-day operations, seize new opportunities or handle emergencies. Financing enables you to expand your fleet more quickly than if you were relying solely on available capital, allowing for greater market reach and increased revenue potential.

Buying a merchant vessel is a significant investment that requires a clear understanding of available financing options and careful management of the finance process. Working with experienced professionals in the maritime industry can help you navigate the complexities of the purchase process and ensure a successful acquisition.