How to Offer Finance for Boats to Customers

The Boating Market: Why Offer Finance?

Demand for leisure boats and marine vessels in the UK remains buoyant, but many buyers are looking for flexible ways to manage such a significant purchase. Offering finance at the point of sale can be a game-changer—enabling more customers to buy, and helping your business grow.

“Providing finance options broadens your customer base and turns browsers into buyers.”

Types of Boat Finance to Offer

There are several finance products suitable for boat purchases:

• Hire Purchase (HP): Spread the cost over fixed monthly payments. Ownership passes to the customer at the end.
• Personal Contract Purchase (PCP): Lower monthly payments, with a balloon payment at the end. Customers can pay to own, part-exchange, or return the boat.
• Marine Mortgages: Often used for larger crafts; similar to property mortgages.
• Personal Loans: Less secured, but more flexible for smaller boat purchases.

At a Glance: Comparison Table

Business Benefits of Offering Finance

• Increase Sales Conversion: Customers can afford higher-value boats.
• Reduce Price Barriers: Monthly payments make boats more accessible.
• Build Loyalty: Customers return for upgrades or future purchases.
• Stand Out: Retailers offering finance improve their competitiveness.

Key Steps to Start Offering Boat Finance

1. Partner with a Finance Broker: Brokers like Kandoo connect your business with suitable lenders.
2. Obtain FCA Registration: Any business offering finance must be authorised or an appointed representative.
3. Integrate Finance Offers Onsite and Online: Display monthly payment options in your showroom and on your website.
4. Train Your Team: Educate staff on explaining finance products and the application process.
5. Promote Responsibly: Ensure promotions are clear and compliant with advertising standards.

Callout: FCA Compliance is Key

All finance offers must comply with Financial Conduct Authority (FCA) rules. If you’re new to this, partnering with an experienced broker can help streamline the process and ensure your business is operating within the law.

The Customer Journey: How Finance Works

• Select a Boat: The customer chooses their desired boat.
• Finance Quotation: Present tailored finance options transparently (include rates, term, deposit, and total payable).
• Application & Approval: The customer applies—either onsite with your team or via your broker’s portal.
• Payout & Delivery: You receive payment directly, and the customer collects their boat (or it’s delivered).

"Clear communication at every step builds trust and confidence in the sales process."

FAQs About Boat Finance

Q: Is there a minimum or maximum boat value for finance?
A: Lenders typically set minimum and maximum advance limits—discuss with your broker.

Q: Do customers need marine insurance?
A: Yes, comprehensive marine insurance is a condition of most finance agreements.

Q: Are used boats eligible?
A: Many finance products cover both new and used boats. Clarify eligibility with your lending partners.

Making the Most of Partnering With a Broker

A finance broker simplifies the process by:

• Handling compliance and reporting
• Connecting you with lenders offering competitive rates
• Providing technology for quick customer applications
• Offering ongoing support to your business

Pull Quote

"Boat finance isn’t just about closing a deal—it’s about helping customers realise their dreams of life on the water."

Next Steps: Getting Started

• Review your boat sales portfolio and identify which models suit finance best
• Contact Kandoo to discuss partnership options and onboarding
• Start promoting your finance solutions across your marketing channels

Ready to offer finance for your boat customers?
Get in touch with Kandoo today and let’s make buying boats easier and more appealing than ever for your customers!