Is there an advantage for lenders to specialize in a particular marine market segment when considering boat loans?
Lenders have had better success in following good underwriting basics, such as credit scores and establishing rational terms, than concentrating in small slices of the boat market. Some assume a sailor is more risk-averse than a go-fast buyer or that a pontoon user may be less inclined toward delinquency than a personal watercraft owner. A mix of boating segments seems to provide more stability on portfolio performance. If a product needs to be recovered, disposition will likely be on a case-by-case basis without influence of the segment it represents. Membership in the NMBA includes financial institutions such as commercial banks, private financing firms, savings and loan companies, and credit unions. Firms extend or originate credit to consumers, retailers/dealers and manufacturers of recreational boats and equipment. Associate members are those which provide services to the marine lending community. Visit www.marinebankers.org for more information.
