Ship Finance Fundamentals
Preparing a Vessel Acquisition for Financing
Summary
A financeable vessel acquisition requires an integrated review of purchase price, technical condition, title, deployment plan, legal security and closing cash flows.
Why this matters in ship finance
Financing failure frequently arises from missing documents or closing mechanics rather than from the indicative loan margin.
The concept
Verify the sale-and-purchase agreement, deposit and delivery conditions, classification and survey records, registry and encumbrances, beneficial ownership, insurance and planned chartering. Align loan availability with the purchase payment mechanism.
How it is used in practice
Prepare sources-and-uses, closing agenda, technical due diligence, independent valuation, required equity, mortgage execution and post-delivery liquidity.
Practical issues
Independent sale price does not prove vessel condition or clear title. Obtain proper mortgage discharge arrangements and confirm any sanctions or export restrictions.
How ShipFinance.ai uses this concept
Provide an acquisition finance checklist and an integrated closing and stress-testing dashboard.
Key takeaways
- Financeability is operational and legal
- Closing cash mechanics are critical
- Purchase price requires independent validation
Primary legal, rule and scholarly sources
- Schinas, Grau & Johns (eds.), The HSBA Handbook on Ship Finance (Springer, 2015) - scholarly reference, not legislation
- Schinas & Kewitsch (2015), Loans and Risk Management Considerations, in BK3 - scholarly chapter
- Loan Market Association - contractual loan documentation practice; not law
- Directive (EU) 2015/849 - EU anti-money-laundering framework (as applicable in 2026)