Why most tenders are paid in cash, and why some aren't
The majority of superyacht tender purchases close in cash. The cost as a fraction of the mothership build is small enough that owners absorb it on the yacht's main capital line. But there are credible cases where finance or operating-lease structures are used: tax efficiency in specific jurisdictions, charter-fleet capex smoothing, and treasury preference for keeping liquidity intact during a multi-year build programme. This page covers what is actually available, what it costs, and what the structuring traps are.
When tender finance makes sense
Three legitimate triggers:
- Charter operator capex management: a charter operation refreshing tenders across a fleet of three or four yachts treats them as productive assets and finances them like commercial equipment
- Private owner treasury preference: rather than draw down liquid investments, an owner finances at a rate competitive with their portfolio yield
- VAT and import structuring: some lease structures (notably French commercial lease, Maltese lease, and historically the Italian leasing regime) interact with VAT and importation in ways that reduce effective tax cost
The third reason is the most jurisdiction-sensitive and the most subject to change. Always work with a maritime tax lawyer on a current basis; the schemes that worked in 2018 are not the schemes that work today.
Marine asset finance basics
Tender finance sits within the broader marine asset finance market. The lenders active here include:
- Specialist marine divisions of European private banks (Credit Suisse historically, before its reorganisation; Julius Baer; LGT; some Spanish and Italian retail banks with marine units)
- US specialist marine lenders (Trident Funding, IBERIABANK, OneMain Marine division)
- Asset finance arms of major banks where the principal is already a wealth-management client
- A small number of specialist independent marine finance houses
Loan-to-value typically caps at 60-75% for tenders, against 70-85% for full yachts. The lower LTV reflects the shorter useful life and the tender market's thinner secondary liquidity. Term is typically 5-10 years.
Rates as of mid-2026 sit broadly in the SOFR-plus-200bp to SOFR-plus-400bp range for high-net-worth borrowers in USD, with EUR-denominated facilities priced over EURIBOR at similar spreads. Borrowers with full wealth-management relationships often get inside these ranges; standalone marine credit pays the higher end.
Operating lease vs finance lease vs loan
Three structures dominate:
| Structure | Ownership | Balance sheet | Use case |
|---|---|---|---|
| Bank loan | Borrower | On-balance-sheet | Straightforward financing, pay down to ownership |
| Finance lease | Lessor (titular), borrower (beneficial) | On-balance-sheet under IFRS 16 | Tax-efficient ownership transfer over term |
| Operating lease | Lessor | Off-balance-sheet (with caveats) | Use without ownership, return at term end |
For most private owners, a bank loan secured against the tender is the simplest structure. For charter operators and corporate owners, finance lease or operating lease can be more attractive depending on accounting and tax position.
The French Commercial Exemption interaction
For yachts (and tenders carried) operated under the French Commercial Exemption regime (FCE), the tender VAT and operating economics depend on the boat being part of a qualifying commercial structure. Where a tender is bareboat-leased to the operating company that runs the mothership, lease structuring can be material to the VAT outcome. The current rules around use-and-enjoyment provisions and crewed-charter treatment have moved several times since 2020. Treat any pre-2023 case study with suspicion. See tender import and VAT for the headline numbers.
Maltese lease (historical and current state)
The Maltese yacht leasing scheme, which historically allowed deemed VAT effective rates well below the standard 18%, was substantially restructured following EU pressure. The current regime applies use-and-enjoyment rules consistent with EU Council Implementing Regulation 282/2011 and subsequent guidance. For tenders specifically, the Maltese route remains administratively viable but the headline VAT advantage is much narrower than it was a decade ago.
What lenders ask for
A typical credit submission for a tender finance facility includes:
- Builder's quote or signed contract
- Buyer KYC, source of funds, and (for private wealth clients) a relationship statement from the lender's wealth team
- Survey report (for used tenders) and CE certification
- Insurance binder pre-funding, with the lender named as loss payee
- A delivery and registration plan, including expected flag and operating area
- For lease structures, the corporate ownership chain and beneficial owner declarations
Approval timelines run 4-8 weeks for established borrowers, longer for new credit relationships. Pre-approval before contract signature is recommended; surprises at funding stage are expensive.
Insurance, mortgage, and registration
Once financed, the tender carries:
- A registered marine mortgage in favour of the lender
- Hull and machinery insurance with the lender as loss payee, sum insured to invoice value, declining schedule over the loan term in line with depreciation
- Often, a separate liability layer carried at the mothership level
The mortgage registration interacts with flag state. Cayman, Marshall Islands, and Malta all support registered tender mortgages straightforwardly. US Coast Guard documentation also accepts preferred ship mortgages. Flag changes during the loan term need lender consent.
Depreciation reality
Lenders model tender depreciation conservatively. A typical lender depreciation schedule looks something like:
- Year 1: 15-20% drop from new
- Years 2-5: 8-10% per year
- Years 5-10: 5-7% per year
Real-world depreciation tracks better than this for well-maintained tenders from tier-one yards (Pascoe, Wajer, Hodgdon, Vikal, Wally) and worse for production builds. The implication: financed tenders should be from yards with a credible secondary market. The used tender market gives a sense of which builders hold value.
Charter income offset
For yachts in the charter market, the tender contributes to the asset's earning capacity but does not generate identifiable income against which to amortise. Charter operators sometimes argue an apportionment, but lenders do not give credit to it in DSCR calculations. The tender is treated as a non-revenue-generating dependent asset.
The exception is dedicated crew tenders and chase boats operated as separate productive assets, where the chase boat itself may generate charter revenue or reduce the mothership's operating burden.
Tax treatment for owners
For private owners, tender finance interest is generally not deductible (the asset is personal-use). For corporate owners running yachts on a charter basis, depreciation and interest can be deductible against charter revenue depending on jurisdiction and the charter qualification of the activity. This is jurisdiction-specific and changes; structuring needs current legal advice every cycle.
Refinancing and exit
Tenders are routinely refinanced at the mothership refit point or on resale. A used tender mortgage at year four is straightforward to refinance with a new lender on improved terms if rates have moved or the relationship bank has changed. On sale, the lender's mortgage is discharged at completion against payment of outstanding principal, and the title transfers free.
For programmes where the tender will be sold and replaced on a 4-6 year cycle (common for charter operators), an operating lease structure can be more efficient than the buy-and-sell approach.
Where we sit
We do not lend, but we work routinely with the marine finance teams at the major European private banks and US specialist marine lenders. We can introduce credible counterparties and we structure tender purchases with finance in mind from the outset, so the contract, insurance, and registration are lender-ready.
For specific structuring questions, send the brief including the mothership flag, intended operating area, and whether the tender will sit under private or commercial use. We will route it to the right finance partner.
This page is reference, not financial advice. Get jurisdiction-specific guidance from a qualified marine finance advisor and tax counsel before contracting.