For the shipbuilding market, the financing issue constitutes the main cornerstone – it is a starting point for every newbuilding. Generally, financing of new vessels can be divided into two phases, pre-delivery finance and post-delivery finance. However, there is no clear-cut division between those phases and often the last phase is mere prolongation of the former one. Nevertheless, in cases, where the financing prior to respectively after delivery and acceptance of the vessel is obtained from different lenders, the usual procedure is to separate those two phases. When it concerns legal aspects of the shipbuilding financing, such as shipbuilding contract, its registration and mortgaging such division plays a significant role. The builder, who usually is a contractual owner of the vessel until delivery, bears the risk of loss or damage prior to delivery and acceptance thereof. It affects the buyer’s positions as a potential owner of the future vessel and as a borrower in relation to the bank financing the buyer’s purchase of newbuilding.
Under the pre-delivery phase there is no vessel and the only ground for providing financing and foreseeing the economic life of the vessel-to-be and future incomes is the shipbuilding contract followed by drawings. The capital costs of a ship and the choice of financing are the crucial factors for success of the project. A huge part of the financing procedure is based on assumptions and future premises concerning the new building. This fact makes pre-delivery phase extremely risky as well as for the buyer and its financing bank as for the builder.