Case Study · Singapore

Bridging loan allows shipping magnate to manage short-term cash flow requirements

30 July 2021

Bridging loan allows shipping magnate to manage short-term cash flow requirements

Rikvin Capital Provides Bridging Loan for Shipping Magnate’s Oil Tanker Acquisition

A shipping magnate based in Singapore was in need of short-term financing to manage cash flow requirements and purchase a valuable oil tanker. To meet their financial needs, the magnate turned to Rikvin Capital for assistance. Rikvin Capital, with its expertise in the maritime industry, quickly provided a bridging loan to the magnate, helping them secure the necessary funds for the acquisition.

The loan was disbursed in just 5 days, allowing the magnate to effectively manage their short-term cash flow needs and complete the acquisition of the tanker. The loan was structured with a loan-to-value ratio of 31%, and had a repayment period of 6 months with monthly payments. Rikvin Capital’s expertise in the maritime industry and their ability to provide flexible financing solutions allowed the shipping magnate to meet their financial needs and achieve their business goals.

  • Location: Singapore
  • Market Value: USD 16,000,000
  • Loan Amount: USD 5,000,000
  • Loan-to-Value: 31%
  • Duration of Loan: 6 Months
  • Payment Schedule: Monthly
  • Asset Type: Vessel
  • Completion Time: 5 days

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FAQ

Can Rikvin Capital lend against a marine vessel?

Yes. Vessel-secured lending is part of our specialist asset book. The shipping-magnate case here closed at USD 5 million against a USD 16 million oil tanker (31% loan-to-value) within 5 days. We work with maritime valuers and specialist UK and Singapore admiralty solicitors to register the mortgage cleanly.

What loan-to-value is available on vessels?

Vessel loan-to-value is usually more conservative than property, typically in the 30 to 50% range, reflecting maritime market volatility, vessel age and class. The case here was 31% on a high-value tanker. Newer vessels with strong charter contracts can support higher amounts.

How fast can a vessel-secured loan be arranged?

5 to 10 working days is normal for a clean deal once we have the vessel particulars, valuation and operator profile. The shipping magnate here received funds in 5 days. Cross-border legal registrations sometimes add a few extra days.