Lenders
The Commercial Marine Industry can be a uniquely daunting market to tackle. Segments are seasonal or driven by demand, weather-related, regional, energy or economic cycles.
We can help you forecast the trends.
Certain assets are expensive. New and used equipment, can cost from $250,000 upwards. High horsepower z-drive tugs for LNG ship docking can cost well over $8,000,000.00, hopper barges over $400,000 and fast ferries upwards of $18,000,000. Smaller vessels, cranes, drydocks each have their own distinct values and range of costs
We can help you understand asset values.
A Commercial Marine business is different from most others. It does not fit easily into the traditional transportation model. Credit analysis by the standard means just does not work. An analyst spreading a copier lease in the morning cannot jump to fast ferry financing in the afternoon.
We can help you understand and adjust your credit models.
A calling officer or leasing manager who thinks and sounds like a three-piece-suit may take years to gain the trust and respect of veteran industry prospects and clients. Knowledge of the issues facing the industry, its players and products make consultative selling more of a reality.
We can help you train your representatives and build a marketing program to support their efforts.
Too many would-be lenders do not have the marketing, credit or asset understanding or expertise to participate successfully in this tens of billions of dollars industry.
We can help you build a profit center that is profitable.
What can this industry offer you?
- Financially strong borrowers and lessees, the strongest are near-investment grade.
- Expanded client relationships can include bank products, revolvers, mezzanine, equity, market research, M&A and more.
- Long asset life equipment that retains, if not increases its value as it ages.
- Strong secondary market.
- Significant tax advantages for the lessor.
- High demand for services and equipment provided by borrowers and lessees.
- Strong utilization and day rates.
- Significant barriers to entry secure borrower’s market areas.
- Experienced, high net worth ownership.
- Recession-proof market segments.
- World-class shipbuilders and repairers.
- Strong, assignable bareboat charters with major corporate entities.
- Low, low incidence of vessel arrests, repossessions and foreclosures.
- Federal ownership and leinholder protection.
- Federal loan guarantee programs.
- Good rates of return for lenders and lessors.
When other segments of the economy are faltering, as they are today, the Commercial Marine Industry has retained its strength, value of its assets and position as the foremost supplier of brownwater services in the world.
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