If you’re in the market for a new boat, you’re probably trying to consider the different options you have for financing it. It’s rare that people can purchase a boat outright, so obtaining finance is typically the obvious option. But finding a boat loan can be difficult – lenders don’t enjoy taking risks on certain luxury goods. If you’ve noticed that you’re not having much success finding a boat loan, you might be approaching the process in the wrong way.

Boat Loans – Alternative Lending Options

In this article, we take a more in-depth look at boat financing to help you better understand your options when it comes to purchasing a new or used boat. We offer advice on ways that you can navigate around traditional problems you may find when you’re looking for a new boat loan. If you’re in the market for a new boat, make sure to read all the information on this page.

Obtaining a Boat Loan Can be Difficult

If you’ve been researching boat loans for a while, you probably already know how difficult it can be to obtain a boat loan. Lenders can be a bit testy when it comes to lending money for boats – there are a few reasons behind this. In this section of the article, we’re going to take a look at what might prevent you from getting a boat loan.

Used Boat Inspections

If you’re purchasing a used boat, it can be tough to get a used boat loan. This comes down to the fact that boat lenders want to be sure you’re not investing in a boat that is broken or has unknown faults. If you end up defaulting on the loan, and your boat has defects, the bank might not be able to get their money back.

If you are purchasing a used boat, there’s a high chance the bank will want you to pay for someone to inspect it. This makes the process much longer and also adds costs to your financing.

Large Upkeep

Another reason that lenders seem to want to shy away from boat loans comes down to the fact that boats take a lot to maintain. New boat owners don’t often realize the amount of money they will have to pour into maintaining their new boat. Also, when people begin to struggle financially, the last thing they spend money maintaining is the luxury goods they own. People who are struggling financially are much more likely to spend money on their home or cars.

This means that a boat may go into disrepair, or a boat owner may underestimate how expensive the boat upkeep is. This all poses a significant risk to lenders who are trying to lend money to boat owners.

Alternative Boat Loans Methods

The best way to make sure you get financing for your boat is to get creative. You don’t want to approach obtaining a boat loan the wrong way if you’re going to be successful. The more loans you apply for, the more inquiries that will be recorded on your credit report – you want to keep your loan applications to a minimum.

Unsecured Personal Loans

One of the best ways to finance a boat is to use an unsecured personal loan. This means that you obtain a loan where the financing isn’t tied directly to one of your assets. The brilliant thing about unsecured personal loans is that they can be used for anything – the bank doesn’t need to approve your purchase. They simply provide you with the money, and you are free to spend it how you like. To purchase a boat using an unsecured loan, you apply for a personal loan and then use the capital to acquire the boat separately.

There are plenty of online lenders that now provide unsecured loans, so you don’t have to use a bank to obtain this sort of financing. If you have a decent credit score, the whole process can take a matter of minutes if you choose the right lender.

Secured Personal Loan

If you want to reduce your interest rates, you can also obtain a secured personal loan. This is the same as a personal loan, but it is tied to one of your assets. If you default on the loan, the lender has the right to seize your asset to satisfy the payments. This is riskier, but it also means your fees will be lower. You don’t have to secure the loan against the boat if you want to avoid inspections. You could secure the loan against the value of your home if you don’t want to deal with questions about the boat you’re purchasing. Just make sure that you can afford the payments – you don’t want to end up losing your home because you can’t afford your new purchase!

Credit Cards

If you have a large credit limit on your credit card, you might have enough available credit to purchase a boat outright. While some boat providers will not want to incur the commission fees that come with credit card transactions, others will be happy to allow you to pay by credit card. This can be a good option if you don’t want to secure your boat financing, but it also comes with its disadvantages. At the end of the day, credit card interest rates are enormous compared to personal loans, so it’s not an excellent choice if you want to keep down the cost of financing your boat.

Also, if you use too much of your available credit, you might reduce your credit score until you can pay it off.


As you can see, there are plenty of ways to obtain a boat loan without having to follow the traditional path. If you want to avoid some of the hurdles you may face with a conventional boat loan, consider the suggestions in this article.

If you’re interested in obtaining a personal loan, make sure to check out the other resources on our site. We have plenty of information on how to obtain a personal loan and certain lenders that you may want to consider. The internet has made obtaining personal loans a whole lot easier!