Ship financing: process and milestones

The whole process from the first contact until drawdown may take up to 25 business days, and as low as 10 business days for existing relationships

Initial Request

Financing request submission by the shipowner to Ydor for acquisition or refinancing purposes, including the following general information:
- Target amount of the shipping loan (based on pre-MOA agreement)
- target vessel name and type (IMO, DWT, LDT etc.)
- Counter-parties’ details involved in the transaction (shipyard, shipping company financial institution etc.)
Preparation of the proposed draft amortization schedule by Ydor

Financial DD
Review and analysis of the shipping company’s financial statements

Technical DD
Reviewing of Inspection reports, DD/SS schedule and budget

Legal DD
Reviewing of legal documents (ownership status, t/c contracts, good standing certificate, etc.)

Investment Memorandum
Preparation of the proposal based on the above DDs

Term Sheet discussion
Submission of the signed Term Sheet Agreement

Investment Memorandum
Finalisation and submission of the Investment Memorandum to Investment Committee

Approval to proceed
Approval by the Investment Committee to issue the loan commitment to borrower

Financial and commercial performance monitoring (quarterly audited accounts, fleet employment and valuation certificates)
Overseeing the repayment schedule of the loan
Monitoring of the covenants position (cash balance and liquidity reserves, corporate collateral, LTV ratio, survey status, sanctions compliance etc.)

Empowering Shipowners with Swift, Tailored Financing