– Alternative Finance for Shipowners

July 26 2022

Written by GVZH Advocates on their website and also published on Lexology

Maritime Fintech Platform ‘eShipfinance’ was established in Greece by experienced finance executives Lunde, Tzoutzouraki and Gulati back in 2018.

Lunde, the former head of shipping at DVB Bank in Germany, assisted with the setting up of Oldendorff-backed Maritime & Merchant Bank in Oslo after retiring from DVB.[1]

eShipfinance has recently introduced access to multiple-vessel deals, through eShipfinance V2 (version 2). This edition caters for an increase in possibilities for shipowners and investors alike, intended for multiple-ship deals’ financing.

Through this system, project pre-approval and deal-making is extremely quick and effective (as little as 20 minutes in some cases).[2] New technology product lines for banks allows for them to double the investor’s portfolio at a lower cost; and it offers first-priority mortgages on ships.

For shipowners, multi-vessel multi-sector projects are supported, a free consultation is given (since a business plan can be easily created for client’s use), and documentation is auto-generated and standardised, for better fulfilling compliance and regulatory requirements. Similarly, for investors, the improved V2 processes projects across any part of the capital structure and it also offers a pre-analysis by experts for any type of project submitted.[3]

Built on the latest interaction of the Microsoft.NET platform, the Greek service targets shipowners, whether small or medium-sized, to seek finance after the pull-back of traditional banks. It brings the shipowners (as borrowers) and investors together on one platform to fund ships, structuring a traditional asset-secured loan.

Once the project is approved, after a risk analysis is completed, and the borrower accepts a final term sheet, an investor gains access to all relevant details of the vessel proposal, to decide which shipping project they wish to invest in, and by how much.

When a project is fully subscribed, the deal is complete!

Overall, as a platform, eShipfinance V2 accurately manages all the practicalities of the transaction between the two parties in a simple and efficient manner, leaving no stone unturned.[4]

For more, visit eShipfinance – Alternative Finance for Shipowners – Lexology