Boat Lenders Say Loans Increased in 1Q 2021

Optimism is making a comeback in 2021 in the marine lending industry. The volume of first quarter boat loans has increased significantly among 88 percent of responding members of the National Marine Lenders Association (NMLA), which conducted the survey among its members. 

NMLA lender members originate or extend credit to consumers, retailers/dealers and manufacturers of recreational boats and equipment. Of the members participating in the survey, 58 percent hold portfolio and 42 percent originate marine loans. The majority of respondents saw an increase in marine loan volume, as well as an increase in the average loan amount during the same quarter in 2020. The 1Q-2020 survey was completed in early April, shortly after the Covid lockdown began. 

More boat loans mean more boat sales

Denison Yacht Sales looks forward to helping clients “navigate the waters” to find the right boat during this economic upturn, says Alexandra Clark, Denison’s Finance and Insurance manager. “As more individuals and families embrace the boating lifestyle, there is an increased need for the availability of financing and a variety of lending options. The demand for vessels and flexible financing continues to grow. With summer right around the corner and people eager to travel, boating is likely to maintain its strong growth and popularity well into 2022.”

Since 2011, the NMLA has surveyed its lender members to gauge changes in the industry, and to identify lending trends. A snapshot of NMLA’s 1Q-2021 Quarterly Survey is below: 

• 88% of respondents said their marine loan volume had increased, compared to the same period in 2020
• 85% saw an increase in the amount of their average marine loan
• Going back six years, this quarter has been the strongest 
• The majority of respondents reported that new boats represented more than 50% of their volume 1Q-2021.

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