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buyout options and amount of advance to be loaned. Too high a residual, and the lender may have an overpriced asset on their hands, but too low a residual, and the rent charged in a lease may be inordinately high. There is a balance to be struck and it, as in credit analysis, is part art and part science.  Once the transaction has been credit and asset man- agement approved, the lender?s operation and documen- tation experts begin the process of putting together the nuts and bolts of the loan agreements, ship?s mortgages, proof of insurance and other pertinent transaction docu- ments. Lien searches, abstracts, U.S. Coast Guard  lings are initiated for the assurance of clear title and perfection of interest for the loan or lease provider. Quali ed mari- time counsel?s skill in maritime law makes the lender?s attorney relationship to the borrower?s attorney an easier (and less expensive) process for both.  Generally speaking, if your loan is paid as agreed, then your relationship with the lender will be amicable. Should trouble arise in your payment  ow you may be introduced to another group of experts that operate with- in the walls of the lender. Collections will work to keep you current on payments within the limits of the law, and Workout will use its expertise to, in dire circumstances, work with you on alternate payment options. Here too, if the unforeseen should happen, a knowledgeable workout specialist could help.Lending and leasing is the water under the keel for many commercial marine operators. Having quality lenders and lessors with the requisite knowledge and experience to service the market?s need can only help it to grow and remain vital. So when you are in the market for a new lending rela- tionship, remember how important actual experience in all aspects of commercial marine  nancing is. Only a lender with real knowledge of the details and nuances of provid- ing vessel  nancing will be a true asset for your  nancial future. And the next time you are evaluating a new re- lationship with a lender unfamiliar with the commercial marine industry, offer some sage advice: ?Learn all you can about our industry, get some real, commercial marine ex- perience under your belt ... and then, we?ll talk.? www.marinelink.com MN 21MN June14 Layout 18-31.indd 21MN June14 Layout 18-31.indd 215/20/2014 10:29:08 AM5/20/2014 10:29:08 AM