Commercial vessels require regular investment to maintain their MCA certification, operational fitness and commercial value. Scheduled drydocking, antifouling, engine overhauls, electronics upgrades and MCA survey compliance work are significant capital outlays that can strain working capital if absorbed from revenue alone. Doulton Bridging Finance arranges finance for ship repair and refit - spreading the cost over manageable monthly payments.
Types of Ship Repair and Refit Finance
Scheduled Drydocking and Antifouling
All commercial vessels require periodic drydocking - typically annually for vessels under 24m, biennial with a "docking in water" inspection for larger vessels. Drydocking involves: haulage, hull inspection, antifouling application, anodes replacement, stern gear inspection, and any identified hull or structural repairs.
Typical costs:
- Small inshore vessels (8–12m): £3,000–£10,000
- Medium commercial vessels (12–20m): £8,000–£35,000
- Larger commercial vessels (20–40m): £25,000–£80,000
- Major commercial vessels (40m+): £75,000–£250,000+
Major Refit and Conversion
Major refits - modernising fishing vessels for new markets, converting passenger vessels for new routes, adding dynamic positioning to offshore support vessels - can cost £100,000–£2,000,000. These are typically financed through a combination of asset finance for installed equipment and a term loan for the labour and non-asset elements.
Engine Replacement
Marine diesel engine replacement is one of the most common large repair finance requests. Typical costs:
| Engine Type | Supply and Fit Cost (typical) | Finance Term |
|---|---|---|
| Small fishing vessel engine (200–400hp) | £30,000–£80,000 | 3–5 years |
| Workboat engine (400–800hp) | £60,000–£150,000 | 5–7 years |
| Ferry or offshore vessel (800hp+) | £120,000–£500,000 | 5–10 years |
| Newbuild engine (twin installation) | £200,000–£1,000,000+ | 7–12 years |
Electronics and Navigation Upgrades
MCA compliance increasingly requires AIS, GMDSS equipment, ECDIS (for vessels over 150GT), chart plotters, radar, and autopilot systems. A full navigation and communications upgrade for a mid-size commercial vessel typically costs £15,000–£60,000. Electronics can be financed through hire purchase or asset finance - the equipment itself serves as security.
MCA Survey Compliance Work
When an MCA survey identifies deficiencies - structural repairs, fire suppression upgrades, liferaft replacement, stability book update - these costs are immediately incurred and cannot be deferred without risking suspension of the vessel's certificate. DBF can arrange emergency repair finance within 5–10 working days for established operators.
Finance Products Available
The right finance product depends on the nature and size of the repair:
- Asset finance / HP: For equipment with resale value (engines, deck machinery, navigation electronics). 3–10 years, rates 7–13% p.a.
- Unsecured business loan: For survey compliance work, labour costs, maintenance. £10,000–£150,000, 1–5 years.
- Revolving credit facility: For operators with regular, ongoing maintenance spend. Draw, repay and redraw as needed.
- Invoice finance: Use commercial fishing income, charter receipts or freight invoices as security for a credit facility against receivables.
- Merchant cash advance: For operators with regular card receipts (charter businesses). Repayment as a percentage of future card takings.
Worked Example: Trawler Drydocking Package
A 22-metre steel trawler requires its biennial drydock including: hull blasting and antifouling (£18,000), stern gear replacement (£8,500), MCA survey deficiency works (£6,000), and electrical system upgrade (£7,500). Total: £40,000.
- Asset finance for electrical equipment (£7,500): HP over 3 years at 9.5% p.a. - monthly payment approx. £238
- Unsecured business loan for remainder (£32,500): 3-year term at 11% p.a. - monthly payment approx. £1,065
- Total monthly outgoings: approx. £1,303 - versus £40,000 cash hit to working capital