Outcome99
A $750K refit, funded in the off-season, paid off in the first six weeks
This yacht charter operator's flagship needed a six-figure interior refit to stay competitive for the season ahead, but off-season revenue was close to zero. Here's how a $750K seasonal line of credit we mediated funded the yard work and paid itself off before summer was over.
1. The Challenge
This yacht charter operator runs a small fleet across Caribbean and U.S. Gulf Coast charter routes, and their 120-foot flagship was starting to lose bookings to newer, better-appointed vessels in the same size class. A $650K interior refit, new furnishings, updated cabins, a refreshed sundeck, would let them command materially higher weekly charter rates, but the yard required a deposit before starting work, with the balance due across project milestones over ten weeks.
The problem was timing. The refit had to happen in the off-season, exactly when the operator's charter revenue was lowest, months before the deposits and bookings from the new season would start covering the cost.
2. The Solution
Outcome99 mediated a $750K seasonal line of credit, sized slightly above the refit's total cost to give the operator a buffer for any yard overruns. Rather than borrowing the full amount as a lump sum, the line was drawn against each project milestone as it came due, keeping the balance, and the interest, tied to what was actually spent at each stage.
As the new season opened and charter deposits started coming in, at the new, higher rate the refit made possible, the operator used those deposits to pay the line back down.
3. The Result
The refit was completed on schedule for the season opener. The upgraded interior let the operator raise weekly charter rates by roughly 35%, and the increase in bookings that followed meant the line of credit was paid down to zero by mid-season, well ahead of what had been budgeted.
The facility remains in place for future off-season refits and maintenance work across the rest of the fleet.
Planning a refit or upgrade before your next season?
Tell us the project timeline and cost, and we'll tell you how to bridge the off-season gap.