What Can Be Financed?
Marine equipment finance covers a broader range of purchases than many boat owners realise. The following equipment types are regularly financed through the specialist marine lending panel:
- Marine engines: diesel inboards, saildrive units, shaft drive replacements, engine repowers for both sail and power vessels
- Outboard motors: portable and long-shaft outboards from all major manufacturers including Yamaha, Mercury, Honda, Suzuki and Tohatsu
- Navigation and electronics packages: chartplotters, multifunction displays, AIS transponders, radar systems, VHF radio, autopilots and full NMEA network installations
- Sails and rigging: mainsails, headsails, spinnakers, standing rigging replacement, furling systems and running rigging packages
- Davits and cranes: electric and hydraulic davit systems, crane upgrades for tender and dinghy handling
- Deck hardware: winches, windlasses, cleats, stanchions, guardrails and deck fittings
- Watermakers: reverse osmosis water generation systems for offshore and bluewater passages
- Solar and wind systems: solar panel arrays, wind generators, battery bank upgrades and inverter/charger systems
Finance Structures for Marine Equipment
Hire Purchase (HP)
Hire purchase is the most common structure for marine equipment finance. You pay a deposit (typically 20%–30%), the lender funds the remainder, and you make fixed monthly payments over an agreed term (usually 2–7 years). At the end of the term, you own the equipment outright. HP is ideal for most marine equipment as it results in full ownership, allows you to modify or insure the equipment without restriction, and creates no ongoing liability to the lender.
Finance Lease
Under a finance lease, the lender retains legal ownership of the equipment throughout the term. You pay monthly rental charges and at the end either pay a balloon sum to acquire ownership, enter a secondary rental period at a much-reduced rate, or return the equipment. Finance lease can offer lower monthly payments (no ownership transfer cost) and may have tax advantages for businesses. However, for marine equipment, HP is generally preferred as it simplifies insurance, sale and modification.
Business Loan (Unsecured)
For refit projects that include labour and installation - where the asset-based lenders can only fund the identifiable equipment - a business loan from Funding Circle or similar can cover the full project cost including yard fees, labour and materials. Rates are higher than HP (8.9%+ APR) but the flexibility to fund a complete project is valuable.
Worked Example: Engine Repower - £35,000 Yanmar Diesel
Equipment: Yanmar 4JH57 57hp diesel engine with installation, 2026 model
Total cost: £35,000 (engine £28,000 + installation £7,000)
Finance structure: HP for engine only (£28,000) via Close Brothers; balance paid direct
Deposit: £5,600 (20%)
Amount financed: £22,400 at 7.5% APR
Term: 5 years (60 months)
Monthly payment: approx. £449
Total repayable: approx. £26,940
Total interest cost: approx. £4,540
Notes: Installation costs (£7,000) cannot be included in HP - paid separately. Alternative: Funding Circle business loan at 9.5% APR covering full £35,000 over 5 years = £731/month, total interest approx. £8,860.
Worked Example: Full Electronics Package - £18,000 Garmin Installation
Equipment: Garmin GPSMAP 8612xsv x2, radar, AIS, autopilot, VHF, NMEA 2000 backbone
Total cost: £18,000 (equipment and installation)
Finance: Black Horse HP - 80% LTV
Deposit: £3,600 (20%)
Amount financed: £14,400 at 8.2% APR
Term: 3 years
Monthly payment: approx. £452
Total repayable: approx. £16,272
Notes: Electronics depreciate quickly - shorter term (3 years) reduces interest cost and avoids being substantially in negative equity on the equipment. Asset value at end of 3 years likely £6,000–£8,000.
How to Apply
The marine equipment finance application process is generally faster than vessel HP - there is no hull survey requirement and valuations are based on invoice or market data rather than specialist survey.
What you'll need:
- Supplier invoice or detailed quote for the equipment
- Proof of identity (passport or driving licence)
- Proof of address (utility bill or bank statement)
- Income evidence: 2–3 years accounts, SA302s or payslips
- Details of the vessel the equipment will be fitted to
- Bank statements (3 months typically)
A specialist broker can significantly streamline this process - selecting the right lender for your profile, packaging the application correctly and managing the process to drawdown.