Norwegian equipment maker Optimarin is moving into lease financing to help shipowners through the coronavirus crisis.
The company said it is teaming up with an unnamed UK finance house to offer flexible solutions for retrofitting its ballast water treatment systems.
The leasing scheme is a first in the sector, Optimarin said.
The product was introduced to meet demand from owners and operators, helping them meet regulations without large capital expense outlays, the company added.
"The need to comply with IMO and USCG [US Coast Guard] regulations is not going away," sales and marketing executive vice president Tore Andersen said.
"At the same time, shipowners, many of whom were already facing challenging markets, have been plunged into economic uncertainty due to coronavirus and the impact on every link within the shipping value chain."
Andersen believes demand is highly unpredictable for owners, making it increasingly difficult to invest in new systems and technology.
"This creates a real danger of owners delaying decisions and eventually facing non-compliance, heavy fines and disrupted operations. That’s the last thing they need," he added.
"This has the potential to be a real problem."
Simpler than bank financing
Shipowners will be offered a chance to improve cash flow by splitting payments into monthly instalments.
No payment or deposit is required up front and servicing and spare parts can be included as part of the package.
Andersen said interest rates are in line with "competitive bank financing", but without the complex requirements and demands of traditional lending.
"There are many, many excellent shipping firms that may struggle to satisfy banking covenants in an investment atmosphere that is increasingly risk averse," he added.
"Providing customers with flexible financing options is in keeping with that philosophy, helping owners get the technology they need without the headache of ‘jumping through hoops’ to finance it."
Optimarin installed the first commercial system in 2000. Clients include Royal Caribbean, Fednav, Hapag-Lloyd, Matson Navigation and MOL.
The company has sold about 1,000 of its USCG-approved systems.
