While some lenders cut business last year,
including HBOS and Kaupthing Singer & Friedlander as parent
banks shored up capital elsewhere, does this reflect a poor outlook
for the yacht sector, or simply an extremely tight liquidity
position for the banks in question?
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James Crew, head of sales at Barclays Marine
Finance (BMF), which maintained its presence throughout the last
difficult year, seems confident in Barclays’ decision to keep
lending.
He said: “With no capital restrictions, and
less competition operating within UK and foreign markets, this is
definitely a good time for our business to be in the marine finance
sector.”
Crew claimed that, although the market has
definitely become smaller, BMF has increased its market share both
in the UK and internationally.
“French and Italian lease products, highly
publicised several years ago, have now all but stopped,” he
added.
The business is run by Edward Marks, the
22-year leasing veteran who has recently been appointed head of
structured finance, marine and corporate jets and superyachts at
Barclays.
“We are looking forward to putting his ideas
in place,” said Crew.
Indeed, the fresh appointment of a man with
such a broad background outside the marine market suggests Barclays
is keen to keep BMF as an integral part of its leasing business
portfolio.
Despite the fresh energy, BMF will still
contend with familiar issues in 2009. Whereas BMF will lend
anywhere from £25,000 (€26,800) to £10 million, Crew says the
sub-£100,000 market has been “definitely quieter” in recent months,
although business rates have remained stable.
For high-end yachts, Crew said that while
margins have gone up, “the overall cost to borrowers has never been
so good” – a factor that has helped drive business forward for
Barclays despite the downturn.
