So you see your friends enjoying weekends on their new boats, soaking up the sun, stopping at local attractions, and sharing photos of dolphins and sandbars. Inspired, you want to create your own memories on the water, but boat ownership is expensive. Financing is essential, so you need to explore boat loans and compare lenders, rates, terms, and eligibility requirements. This guide will help you pick the best boat loan for you so you can get out to sea sooner rather than later.

5 Factors to Consider Before Applying for a Boat Loan

Financing is often the best option when buying a boat, but there are some factors to weigh before applying for a boat loan.

1. Your Credit

Most boat loans are granted based on credit. The higher your credit score, the better your chances of getting a loan approved. If you have bad credit or no credit, don't worry, there are some institutions that also provide loans to people with bad credit and guarantee your boat purchase.

2. Your Budget

As with any large purchase, it is important to ensure that your future boat loan repayments fit into your monthly budget. Take the time to take inventory of your debts, minimum payments, and other financial obligations to understand how much boat you can afford.

3. The type of loan you need

Ship loans can be either secured or unsecured. Secured loans require an asset as collateral in case you default on the loan. Unsecured loans, on the other hand, do not require any collateral and are issued almost entirely on credit.

4. The total cost of owning a boat

It's no surprise, but the cost of the boat itself is only part of the equation. Annual boat maintenance costs can be as much as 10% of the total cost of the boat. Other costs to consider include: fuel, dockage, storage fees, taxes, registration.

Below, this guide summarizes some of the best boat lenders that offer competitive loan amounts and terms, see below to learn how.

Best for long-term repayments: Southeast Financial

Who's it for? Southeast Financial offers loans with repayment terms of up to 240 months, the longest repayment term on this list. In comparison, most other personal lenders offer repayment terms of just seven years.

Standouts: Southeastern Financial also offers loan amounts up to $4,000,000, which also makes it an attractive lender if you need to borrow more money.

Pros

• Low minimum credit score requirements

• Long repayment terms up to 20 years are available

• Loan amounts up to $4,000,000

Best for Fast Funding: LightStream Personal Loans

Who is this service for? LightStream is known for providing personal loans that are funded quickly. As long as the application process goes smoothly and the information you submit is accurate and complete, you can receive funds as soon as the same business day. You will also need to review and electronically sign your loan agreement, provide your bank information, and complete the final verification process by 2:30 pm EST to receive funds that same day.

Standouts: LightStream offers a 0.50% interest rate discount if you sign up for automatic payments before your loan is funded.

Pros

• Same-day funding available via ACH or wire transfer

• Loan amounts up to $100,000

• No origination fees, no prepayment fees, no late fees

• LightStream plants a tree for every loan

Best for those with lower credit scores: OneMain Financial Personal Loans

Who’s it for? OneMain Financial doesn’t have a strict minimum credit score requirement for applicants, so this lender is more flexible in its considerations. This means that if your credit score isn’t ideal, you still have a chance to get approved.

Standouts: OneMain Financial doesn’t charge any prepayment penalties, which means you won’t be penalized for paying off your loan balance early.

Pros

• Approved for applicants with bad or average credit

• No early repayment fees

• Reasonable loan minimum ($1,500) for smaller needs

• Can be pre-qualified with a soft credit check (no immediate hard inquiry required)

• ACH funds available in 1-2 business days

• Option to apply for a secured loan for potentially lower interest rates

Best for Used Boats: Sterling Associates

Who is it for? Sterling Associates specializes in boat loans for new and used boats. Older boats are more difficult to loan on because they are more worn out and riskier.

Highlights: Sterling Associates not only provides boat loans for used boats, but also offers boat loan refinancing.

Pros

• Offers long repayment terms of up to 20 years

• Loan amounts may exceed $500,000

• Offers boat loan refinancing and has expertise in boat insurance

• Offers used boat loans

Best for larger loans: Botzon

Who is it for? Boatzon offers boat loans up to $10,000,000. This is the highest financing amount of all the lenders on this list, so if you are looking to purchase a more expensive boat, this lender may be a good choice.

Standouts: Boatzon is also an online marketplace where you can view and purchase different types of boats that fit your budget.

Pros

• Offers long repayment terms of up to 20 years

• Loan amounts up to $10,000,000

• Considers any credit score, even if you have bad credit

• Offers same-day approval

Conclusion

When deciding to buy a boat, weigh your financial situation and budget against the total cost of owning a boat. Once you know how much you can afford, you can find loan options that fit your budget. A boat can be an expensive investment, but it's also a great way to spend warm days out on the water. It pays to do your research before heading out on the water.