We provide lender-ready capital raise packaging and debt or equity placement support for business owners and buyers looking to secure serious term sheets and close funding on a defined timeline.
For business owners and acquirers pursuing private debt or equity, submit your deal for review. We revert within one working day with next steps and either a quote for our services.
For pre-submission discussions, we offer paid consultations. To initiate underwriting and lender outreach, submit the deal.
Vessel Finance And Tanker Acquisitions
Oil tanker acquisitions are not funded by a single magic lender call. They are funded through a capital stack that matches vessel value, charter visibility, sponsor quality, and risk appetite. If you walk in asking for “100% ship finance” with no charter logic and no equity plan, you are telling lenders you are not ready.
The right question is not “Can I get a loan?” The right question is “What capital structure can this tanker support?” That is where leverage, covenants, and sponsor equity start to make sense.
In practice, you are usually combining one or more of the following: senior secured debt, leasing or sale-and-leaseback capital, sponsor equity, and sometimes a mezzanine layer or seller support. The exact mix depends on the vessel and the buyer, not just the price tag.
Traditional debt secured by a first-priority mortgage over the tanker. Best suited to financeable vessel age/spec and credible repayment capacity from charter or trading cash flows.
Leasing house buys or finances the vessel and leases it back. This can support higher leverage in the right case, but pricing, purchase options, and covenants must be modeled properly.
Used when sponsor equity is not enough for a clean senior-only close. Mezzanine or second-lien debt fills part of the gap at a higher cost and tighter structure.
This is not just a headline down payment. It usually also covers legal fees, inspections, DD, class items, insurance pre-funding, and liquidity reserves.
There is no universal number. The equity requirement moves with leverage, vessel profile, and deal quality. A newer, well-employed tanker with a strong sponsor can support more debt than older tonnage on pure spot assumptions. That changes your equity cheque immediately.
| Structure Scenario | Indicative Debt Leverage (LTV) | Equity To Purchase Price | Practical Cash Equity At Closing |
|---|---|---|---|
| Conservative Senior-Only Case | 50% to 60% LTV | 40% to 50% | Often higher once fees, reserves, and closing costs are included |
| Mid-Market Senior Debt Case | 60% to 75% LTV | 25% to 40% | Commonly lands around high-20s to mid-40s percent all-in cash need |
| Strong Sponsor / Strong Asset Case | 75% to 85% LTV | 15% to 25% | Often closer to 18% to 30% after costs and liquidity buffers |
| Older / Niche / Volatile Earnings Case | Below standard levels | Can exceed 40% | May require substantial equity plus stronger reserves and covenant headroom |
The number most sponsors miss is the all-in cash requirement. Lenders size to vessel value and cash flow. They do not fund your legal bills, inspection surprises, or short-term operating runway by default.
Modern, commercially liquid tankers usually get better leverage than older tonnage with higher residual value risk, compliance capex risk, or narrower buyer pools.
A contracted earnings profile can improve lender comfort. Pure spot exposure often leads to lower leverage, tighter covenants, and a bigger equity ask.
Lenders back operators, not only hulls. Prior ownership, technical management quality, reporting discipline, and liquidity support matter in credit sizing.
Crude tankers, product tankers, and gas carriers each price differently in financing markets. Secondary market depth and volatility affect loan sizing.
Debt is usually sized off fair market value, not only contract price. If you overpay, your equity requirement increases because lenders will not finance the premium just because you agreed to it.
Sanctions exposure, registry, ownership chain, and documentation quality can shift lender appetite fast and change terms even when the vessel itself looks financeable.
Example numbers make this clearer. Assume a sponsor is acquiring a product tanker for USD 32,000,000.
| Item | Scenario A: 70% LTV Senior Debt | Scenario B: 85% LTV Strong Case |
|---|---|---|
| Purchase Price | USD 32,000,000 | USD 32,000,000 |
| Debt Amount | USD 22,400,000 | USD 27,200,000 |
| Equity To Price | USD 9,600,000 | USD 4,800,000 |
| Closing Costs And DD (assume 3%) | USD 960,000 | USD 960,000 |
| Initial Liquidity / Reserves (example) | USD 1,200,000 | USD 1,200,000 |
| Total Sponsor Cash Needed | USD 11,760,000 | USD 6,960,000 |
| Total Sponsor Cash As % Of Purchase Price | 36.75% | 21.75% |
This is an illustration, not a quote. Real numbers depend on appraisal, charter economics, lender fees, legal structure, insurance requirements, technical findings, and covenant package. The point is simple: a “15% equity deal” can still require materially more cash at closing.
State vessel type, age, yard, class status, purchase price, intended employment, and why this tanker fits your operating strategy. A vague “ship purchase” brief gets weak lender feedback.
Decide the target leverage, sponsor equity, and whether you need mezzanine or a leaseback option. Build this before outreach so lenders see a disciplined ask.
Include vessel specs, class records, valuation context, charterparty or employment assumptions, sponsor financials, ownership structure, and a cash flow model with debt service coverage.
Banks, leasing houses, and private credit funds do not underwrite the same way. Route the file to lenders that fit your vessel segment, leverage ask, and execution timeline.
Focus on advance rate, tenor, amortization, DSCR, LTV maintenance, reserve requirements, prepayment mechanics, and charter assignment terms. Cheap pricing with bad covenants can still kill the deal.
Coordinate legal docs, mortgage filings, insurance assignments, class confirmations, and funds flow mechanics so acquisition closing and debt drawdown line up cleanly.
| Document / Information | Why It Matters |
|---|---|
| Vessel Particulars And Technical Specs | Establishes what the lender is financing and whether the tanker fits mandate and risk limits |
| MOA / Purchase Terms | Confirms price, conditions precedent, timeline, and closing mechanics |
| Valuation Reports | Supports debt sizing and LTV testing against fair market value |
| Charterparty / Employment Evidence | Helps lenders assess cash flow visibility and repayment strength |
| Sponsor Financials And Liquidity | Shows ability to inject equity, support reserves, and handle volatility |
| Corporate Structure And KYC Pack | Required for compliance, sanctions screening, and legal documentation |
| Cash Flow Model And Sources / Uses | Translates vessel economics into lender language and shows the full funding requirement |
Sponsors quote “85% finance available” and assume they only need 15% cash. Closing costs, reserves, and technical remediation can make the actual cash need much higher.
A tanker is not financed like empty real estate. Lenders care about employment, charter rates, utilization, and debt service capacity.
Sending the same file to every bank and fund wastes time. The lender set should match tanker type, age, geography, and leverage target.
A deal that closes can still fail later if DSCR and LTV maintenance covenants were not stress-tested against lower rates or weaker utilization.
If the negotiated price is above supportable value, lenders may size off the lower valuation and force a bigger equity injection.
Missing class records, inconsistent numbers, and unclear ownership chains make lenders slow down or walk away even when the vessel itself is financeable.
Financely supports transaction-led structuring for vessel and ship financing, including crude and product tanker acquisitions, refinancing, and layered capital stacks where the deal is commercially real and document-ready. The goal is to package the vessel, charter logic, sponsor profile, and cash flow case into a lender-readable file instead of a vague leverage request.
If you are evaluating a tanker purchase, the fastest way to get serious lender feedback is to submit the actual file: vessel particulars, purchase terms, valuation context, sponsor equity position, and employment plan. That lets us size the request and route it to the right lender group.
We can help structure and present tanker acquisition financing requests on a best-efforts basis, including senior debt, leaseback pathways, and blended capital stacks where the numbers support it.
It depends on leverage, vessel quality, and sponsor strength. In many cases, sponsor equity to price may land in the 15% to 50% range, and the all-in cash requirement can be higher once costs and reserves are added.
Pure 100% debt is uncommon in standard tanker acquisition finance. Some structures can reduce upfront equity, but most lenders still expect sponsor cash and a credible liquidity buffer.
Both matter. Lenders look at collateral value and cash flow serviceability together. A strong charter profile can improve terms, but it does not erase asset risk.
Yes. Older or less liquid tonnage often attracts lower leverage and tighter conditions, which increases sponsor equity needs.
Sponsors should budget for fees, legal costs, DD, inspections, insurance setup, reserve accounts, and any technical remediation or class-related items.
Yes, subject to review. A signed or near-final purchase framework usually improves execution because lenders can underwrite a defined vessel and closing timetable.
Informational content for commercial audiences only. This page is not legal advice, tax advice, investment advice, or a commitment to arrange or fund any transaction. All vessel financing outcomes depend on lender policy, vessel condition and valuation, charter profile, sponsor credit quality, compliance checks, legal review, and credit approval.
Financely operates as a transaction-led capital advisory desk. We assess financeable files, structure lender-ready packages, and coordinate capital outreach through a controlled process on a best-efforts basis. Where regulated execution is required, delivery is coordinated through appropriate licensed counterparties under their own approvals.
Financely advises growth-focused businesses on accessing capital by introducing their opportunities to professional investors. Financely is not a securities broker or dealer. Where appropriate, engagements are coordinated with regulated broker-dealers, investment banks, legal counsel, and other specialists.
Financely does not solicit, offer, or accept orders to buy or sell securities and makes no assurance regarding capital-raising outcomes.
Services are strictly business-to-business. Financely does not provide personal finance, consumer credit, or retail advisory services.
Advisory services are reserved for post-revenue companies that recognize the time and resources required for professional underwriting.
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All mandates start with an RFQ. We review submissions, issue a brief Go/No-Go memo, and where bankable, release a Term Sheet that leads to funding. We arrange capital across Senior Secured, Unitranche, Second Lien/Mezzanine, Preferred Equity, and Gap Solutions. We do not process deals by email or chat.
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Funding arranged for trade flows with instruments sized to your cycle and aligned to delivery and settlement.
Move forward to secure working capital and keep goods moving. Submit the RFQ to start underwriting for funding.
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Financely Inc. (“Financely”) provides corporate-finance advice and is wholly owned by Aurora Bay Trust, a trust formed under Bahamian law, together with its authorized affiliates. Depending on deal structure, jurisdiction, and local rules, engagements may be carried out through Financely Group LLC, a non-deposit-taking, non-banking financial company; Ashford Capital Advisory LLC; or another related entity.
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