Ship repair yards and marine engineering businesses are capital-intensive operations. Travel lifts, slipways, fabrication equipment, CNC machinery, overhead cranes and specialised tools represent significant capital investment - often well beyond what a business can fund from working capital. Doulton Bridging Finance arranges asset finance, working capital facilities and invoice finance for ship repair yards and boatyards of all sizes.
Equipment Finance for Ship Repair Yards
Travel Lifts (Marine Hoists)
Travel lifts are the single largest capital item for most boatyards and ship repair facilities. A travel lift provides the ability to haul vessels for drydock, surveys and bottom work. Typical costs and finance terms:
| Travel Lift Capacity | New Purchase Cost | Used Purchase Cost | Finance Term |
|---|---|---|---|
| 35-tonne (small yard) | £250,000–£400,000 | £80,000–£180,000 | 5–7 years |
| 75-tonne (medium yard) | £400,000–£700,000 | £150,000–£300,000 | 7–10 years |
| 150-tonne (large yard) | £700,000–£1,200,000 | £250,000–£500,000 | 7–12 years |
| 300-tonne+ (major facility) | £1,500,000–£3,000,000+ | £500,000–£1,200,000 | 10–15 years |
Travel lifts are well-understood assets for specialist marine lenders and attract competitive finance rates. HP or finance lease structures are both available.
Cranes and Lifting Equipment
Fixed and mobile cranes for mast removal, engine installation and vessel handling. Mobile harbour cranes, fixed shipyard cranes and overhead gantry cranes. Finance: HP or finance lease, 5–10 years. Rates 7–11% p.a.
CNC Machinery and Fabrication Equipment
CNC plasma cutters, CNC routers (for GRP and timber), CNC plate rollers, welding equipment and spray booths for ship repair yards working across steel, aluminium and GRP. Finance: HP, 3–7 years. Rates 7.5–12% p.a.
Slipway Infrastructure
Hard standing extensions, pontoon additions, slipway resurfacing and winch replacement. These are fixed improvements that may be financed through commercial property finance or business loans depending on whether the yard owns or leases its premises.
Working Capital and Invoice Finance
Ship repair yards often face working capital challenges: materials and labour costs are incurred upfront while large invoices (particularly from commercial shipping clients) may not be paid for 30–90 days. Invoice finance - factoring or invoice discounting - advances up to 85–90% of outstanding invoices, giving immediate cash flow against the work already completed.
For yards with predictable maintenance contracts (annual drydocking agreements with ferry operators, fishing fleet service agreements), revolving credit facilities of £50,000–£500,000 provide flexible working capital headroom.
Premises Finance
Ship repair yards occupying freehold premises may benefit from commercial mortgage finance to release equity for equipment investment. Marine-specific commercial properties - typically located in ports or harbour areas - are assessed by specialist commercial property lenders who understand marine-use permissions and the asset class.