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2011 MYS: Arc & Co Explain Modern Yacht Financing

By Ben Roberts

Established in 2007, Arc & Co is a company with a driven goal and an expert insight into the economic downturn, working to guide high-net-worth individuals through the storm. After launching Arc & Co Marine in 2009, Director of Marine & Aviation, Leon Batchelor, joined Superyachts.com to shed some light on the climate surrounding superyacht finance.

The objective of Arc & Co Marine & Aviation is simple, to help structure the purchase of superyachts, private aircraft and high-end residential properties for ultra-high-net-worth individuals.

“I think the key thing for any one that’s considering buying a superyacht, especially if you want to look at using leverage,” states Leon. “But the key thing is to look at the yard you want to buy your yacht from and also whether you want to buy a new build yacht or a pre-owned yacht. Now, the market as it is at the moment, there is quite a lot appetite still for financing assets which are complete; however, those banks which are lending into the yacht market are a little bit hesitant to look at yachts which are going through the construction phase. That’s typically because it takes two to three years for a yacht to be built, possibly even longer, and that’s really quite a protracted length of time where so many things can go wrong; so the banks look at that as a particularly big risk.”

Working with a number of different lenders in the market, Arc & Co have been working with government initiatives in order to help under-write clients, liaise with banks and bring the lending opportunities back to potential yacht owners around the world.

For a deeper insight into how Arc & Co is working to develop the way lending and financing is utilised in the Superyacht Industry, watch the above interview with Arc & Co Marine & Aviation Director Leon Batchelor.

By Ben Roberts