NextBoat has secured up to US$7.2 million in debt financing to acquire pre-owned boats, support wholesale transactions and expand its nationwide US boat trading network.
The funding comprises a US$5 million revolving credit facility and up to US$2.2 million in bridge financing. Further details are set out in the company’s Form 8-K filings with the US Securities and Exchange Commission.
Chief executive Ross Tannenbaum said the company had chosen debt rather than a common share offering to limit shareholder dilution.
“Since stepping into the CEO role, I’ve made capital allocation a priority,” he said. “We chose to pursue debt financing for this growth capital because we believe it provides an opportunity to invest in our business while limiting the dilution that would result from a common stock offering.”
The company is developing a network connecting owners, buyers, brokers and dealers, using sales professionals and technology to source inventory and arrange transactions.
It aims to support remote purchases, sales and trades without building a large national network of physical dealerships.
Dealer portal
“We are building a network that can find the right boat, connect it with the right buyer and help bring the transaction together,” said founder and chairman Jason Ruegg.
A dealer portal is being tested with MarineMax before a planned wider rollout. The platform is intended to let dealers submit pre-owned boats and trade-ins for evaluation and purchase offers, adding inventory sources for NextBoat.
The company is also developing AI-assisted valuation tools to assess potential purchases, identify unsuitable boats and flag ageing stock that may require price reductions or liquidation.
NextBoat is targeting annualised inventory turnover of five to seven times. It stressed that this is a long-term objective rather than a current result, with performance dependent on market conditions, inventory mix and execution.
Founded in 2012, the business was previously known as Off The Hook YS.
