Originally Posted by GA Peach
Thank you for letting me join!!! Hope I don't get TOS for this, so here goes. I have a client who is looking for financing to construct a large group of new trawlers, so I thought this might be a friendly place to see if someone can recommend a financial institution to do this type of loan? Thanks!!!
If your client is coming to you for possible financing then he needs to stay out of the boat business. If you are going into this business on borrowed money, you're likely to find yourself in trouble. Second, someone who can really afford to build trawlers already has plenty of their own sources for funding.
The number one reason for failure of boat builders is under-capitalization. The business is much too volatile to have debt. You must be in position to weather the slumps. And the business is a huge gamble. I honestly believe an investor in this business should be in position to be fine if they lose every dime of his investment.