- the price of the boat

- how much of your own money you are going to use

- how much do you need to borrow

- the interest rates of the loan

- the loan terms; the all important small-print

Your best option is to compare loan offers from several sources before you choose the one suitable for your financial circumstances. The Internet makes this very easy because you'll be provided a list of different loan offers with rates and terms included. This makes it really easy to do a comparison and choose the right boat lender for you.

When you have made a decision on which loan offer you'll go for you must now apply for the boat loan. You loan application must then be approved and one of the main approval criteria is your credit rating. The lender does not need to seek your approval to do a credit check. One tip is to do your own credit check before you apply for a loan. This does not cost very much and can help you avoid any possible issues with your loan application.

Most lenders will also need proof of income before they can approve your loan application. If you apply for your loan offline e.g. down at your bank or Building Society then be prepared for some paperwork. However, the main advantage of going online is that you can fill in a form in minutes and have a decision in principle almost immediately.

When it comes to the loan's interest rate, you normally have a choice between fixed or variable rate. The advantage of a fixed loan interest rate is that you will know upfront what your monthly payments will be. The variable loan rate option can give you a lower rate in the beginning but normally the rates often increase after a while. So you need to consider each interest rate type before putting pen to paper.

Some lenders even give you a third option where you can choose between a loan interest calculated on a per day basis or over the lifetime of the loan. Do your calculations very carefully for this option as it can make a significant difference to the cost of your loan.

Also be aware of all the penalties and fees included in the price of the loan. For example if you want to pay your loan off early then you may be charged. So if possible go for a loan that does not have a lengthy period where you will be penalised if you pay off the loan during that period.

You should seriously consider the loans pay back time. This is typically anywhere between 5 to 25 years. Obviously choosing a longer time to pay for the boat, the longer it takes you to acquire equity, which is the part you own. The loan's payback time should always be shorter than the time you plan to own your boat.

Taking out a boat loan is a serious financial commitment and one which you should spend plenty of time considering. There are lots of lenders keen for your business so you should get a good deal. However, always, always, read the small print, especially if a lender is giving you a great deal compared to everyone else. Do your homework and you should be fine.