Financing for business owners and complex tax return?

I'd like that kind of recommendation to come from my own accountants whose opinion I already know I can trust.

A good marine lender will know how to properly present this scenario to a bank. Try Harris Marine Finance, Sterling Acceptance, or Ocean Point Marine. All of these have local offices in Md. BTW a $350K max loan makes it little easier in my recent experience.

As Eric wrote. Marine lenders have seen every situation imaginable and taxable income is not what lenders look at. If you want to assist lenders you could provide financials for your business showing EBITDA.

......or it could be the “perfect box” the finance company wants is for you to have more skin in the game on a $600k boat than $200k (that appraises well higher than the purchase price...800 plus credit)

I’m misquoting Shakira’s song, but in my experience

“EBITDA don’t lie”

If you have equities in a brokerage, many have a pledge asset line product that Is around 2.5% tied to Libor.

Perhaps don't limit yourself to a boat loan. You ought to be able to get an unsecured line in that amount without too much difficulty (and lenders offering unsecured lines are very good at understanding tax returns and credit risks). Either way, it will be a full recourse loan. Have you talked with your primary banker yet? Or better still the business's primary banker?

My Tax office sent me a letter. Just Don't Bother.

No, seriously, they just find my income so insignificant to not bother Taxing me.
Kinda nice living on a offshore Island where the Tax threshold starts in the millions.

Maybe look into Credit Unions?

essex may look at it? thats Bank of West retail face. They tend to focus on score on sub 200k boat loans and they underwrite a good % of them nationally.

You can't claim it when convenient and not when it's not. Seems to me there's a case going on about just that in NY these days.

Sounds to me like you're just making excuses of why they won't loan you money and excluding a lot of critical information. They don't look favorably today on those avoiding taxes and claiming they're really making a lot of money. However, they're not in the business of turning away credit worthy customers. $400k is a substantial loan to someone not reporting income. Depreciation isn't a get out of debt free card as depreciable assets require renewing and replacing. Lenders are not stupid. They know how to evaluate all aspects. If your net worth is so great then it would seem to me your own bank would make you a personal loan large enough for the boat. If you have so much depreciation then they may consider your assets less than desirable, at least not easily converted to cash or risky in one way or another. The bank or banks you regularly do business with should be the ones least likely to require the perfect box. The fact they won't loan you the money needed also says a lot to other lenders.

And just why not pay cash? I think the answer to that may tell you why they aren't quick to make the loan.

If you've put the effort you describe into getting financing, there's a reason and it's not just your Taxable Income on your 1040. I assume also your income is flowing through disregarded entities on K-1's. Well, that tells a lender nothing when that's low and they are not going to evaluate those entities, separate legal entities, in making a decision on loaning you money.

There are other issues as a lender I would see also. You're avoiding taxes through accelerated depreciation in a low tax rate time. Now, not having those expenses will lead to greater income in the future in perhaps higher tax rate years.

Sorry to be making these statements but you're the one who brought this topic to the forum. I don't buy your complaint. It's flawed on the surface. Lenders want to loan money.

OB nailed it. Banks know the economy will do fine for next 12 to 24 months but after that it's all up in the air. They want that loan staying current even when things crash. Construction is booming now but that equipment gets real expensive sitting in your yard.

You come to a public forum and ask for opinions and information which we provide. You don't like it, that's your choice. You can try to turn it on me and that's fine, but others agreed with what I expressed. I don't know why you can't get a boat loan, but I know plenty of people are getting them. Some banks may have all they want, but plenty of other banks making them. Perhaps I'm in internet troll but I report income and pay taxes, just don't want a loan.

I guess I'm stupid too because I do pay cash. I know the arguments you're likely to make and base your stupid on regarding low interest rates and ability to earn more elsewhere, but I can make as many arguments in favor of paying cash on a rapidly depreciating asset.

I offered the guess your tax returns don't show the income due to flow through entities. Well, translated, that means you don't have the income or even the EBITDA since it's in other entities. That also makes it subject to other pressures and less valuable to a lender on a personal boat. Typically, they don't want to look beyond the taxable entity, which is you personally.

I also suggested a personal loan of some sort since you said you had the cash and it would seem then your normal banks would loan it to you if that's the case. One other option would be if you have the strong financials in the business instead then letting the business buy the boat and get a loan for it.

I would add one other thing. Seeing as how your occupation is land development, I do believe many banks are concerned about potential drops in real estate values. Now, if there's one asset a bank wants less to own than real estate it's a boat. Boat loans are collateralized by the boat, but the lender is really making them based on income and other assets. I know some developers of office buildings have recently found the attitudes of banks to turn away from financing them. Meanwhile, surprisingly, retail and malls are getting a lot of financing. However, you mentioned 3.75%. and much of that business is at higher rates. Perhaps some of the problem is banks reserving money to loan at higher rates. You mentioned BB&T and Suntrust (Now jointly Trust) is financing boats in your price range at 4.74-5.74%. However, a 2008 is getting very close to their maximum age which is 15 years.

I'd suggest checking with Suntrust, with Sterling, with Essex (4.99% to 5.19%) in the amount you're looking, with Bank of America Private Bank (they've been begging for yacht business), with Seacoast Bank and with Sterling and any other banks with whom you have relationships, even those that "don't do boat loans." Many banks will do loans to purchase yachts, even though they don't do boat loans, for favored customers.