The majority of commercial vessel purchases in the UK involve secondhand vessels. Whether you are buying a 15-year-old steel trawler, a used crew transfer vessel, or a recently-decommissioned ferry, the finance market for used commercial vessels is accessible - but requires the right broker to navigate lender age restrictions and survey requirements. Doulton Bridging Finance regularly places second-hand commercial vessel finance across all vessel categories.
Age Restrictions by Lender
This is the most important variable in used commercial vessel finance. Lenders have differing maximum vessel age policies:
| Lender Type | Max Vessel Age at Start | Max Vessel Age at End of Term | Notes |
|---|---|---|---|
| Mainstream specialist marine lenders | Typically 15–20 years | Typically 25–30 years | Survey condition essential |
| Conservative specialist lenders | 10–15 years | 20–25 years | Lower rates for newer vessels |
| Flexible specialist lenders | Up to 25–30 years | Up to 35–40 years | Higher rates, lower LTV |
| Alternative/asset lenders | No maximum (case by case) | No maximum | Strong survey and income evidence needed |
DBF's whole-of-market access means we can identify lenders for older vessels that mainstream lenders will decline. The key is matching the right lender to the specific age and condition profile of your vessel.
Survey Requirements
A marine surveyor's report is required for virtually all used commercial vessel finance. Key survey requirements:
- Who conducts the survey: Must be a qualified marine surveyor - ideally a member of YDSA (Yacht Designers and Surveyors Association), RINA, or IMarEST. The lender will specify acceptable surveyor qualifications.
- Survey scope: Full condition survey including hull (out of water inspection for vessels over a certain age), machinery, electrics, safety equipment, and MCA coding compliance. For fishing vessels, additional checks on fishing gear and mechanical systems.
- Survey currency: Most lenders require a survey within 3–6 months of finance application. An older survey may be acceptable for a recently-surveyed vessel with MCA annual survey certificate.
- Valuation: The surveyor should provide a valuation (market value and insurance value). Finance is based on the lower of purchase price or surveyed value.
LTV on Older Commercial Vessels
Loan-to-value (LTV) reduces with vessel age. Typical LTV by vessel age:
| Vessel Age | Typical Max LTV | Notes |
|---|---|---|
| 0–5 years | 80% | Best rates, most lender options |
| 5–10 years | 75–80% | Good lender appetite |
| 10–15 years | 70–75% | Some lender restrictions begin |
| 15–20 years | 65–70% | Specialist lenders required |
| 20–25 years | 60–65% | Very specialist; strong survey needed |
| 25+ years | 50–60% | Alternative/asset lenders; higher rates |
How DBF Places Second-Hand Vessel Cases
For used commercial vessel cases, DBF's process is:
- 1Initial assessment: Vessel age, type, estimated value, required finance, trading history.
- 2Lender identification: Match vessel age and type to lenders with current appetite.
- 3Survey coordination: Advise on surveyor selection and survey scope to satisfy likely lender requirements.
- 4Application packaging: Present vessel documentation, survey, accounts, and MCA coding evidence in the format lenders want.
- 5Negotiation: With multiple lender options, negotiate the best rate and terms for the specific vessel.
For genuinely old or unusual vessels where mainstream lenders will not lend, DBF has access to alternative asset lenders who take a more case-by-case approach. These lenders charge higher rates - DBF will always be transparent about the difference between rates available from mainstream vs alternative lenders.