Financing Your Engines

 

 

Engines usually constitute a major percentage of the costs of any marine or industrial project. Indeed, on some high performance boat designs, the engines and drives can be as much as 30% or more of the total price.

By offering complete propulsion packages, engine, gearbox, and drive, MarineDiesel can often help offset some of these costs while guaranteeing performance levels.

However, formal financing is often a requirement for our customers, particularly on large projects.

Engine purchases are often very difficult to finance, due to the fact that it can be very difficult to separate an engine purchase from the purchase of the vessel. It comes down to risk: The finance company looks at the risk from the “what if the customer doesn’t pay?” perspective. This problem is compounded by the fact that engines depreciate up to 30% of their value on the date of commissioning, whether used beyond that date or not. Therefore, most engine manufacturers that offer financing are only able to make that offer when the engines are tied via lien to the financing of the vessel as a whole. This often causes conflicts with documentation or complications on the financing itself.

So, what is the solution?

MarineDiesel works with EKN, the Swedish government’s export finance department ( EKN Website ), to offer financing plans to our customers. The financing program requires approval, and is not available in every region or on every project, but we have financed numerous projects through them in the past, and the process is relatively straightforward.

Additionally, MarineDiesel works with other lenders in different regions, and we can occasionally make arrangements for specific projects. Simply inquire with us or your local distributor at the time of quotation and we will try and arrange a financing proposal for your project.