Cong Minh 18 Sold to Iraqi Buyer for USD 650,000 with Vendor Financing from SVC Marine
SVC Marine handled the sale of the Vietnamese general cargo vessel Cong Minh 18 to an Iraqi buyer for USD 650,000, including a vendor-financing structure arranged by SVC Marine to complete the transaction.
This case was not a simple brokerage transaction. To make the deal workable, SVC Marine extended USD 100,000 in vendor financing to the purchaser. A remaining balance of USD 38,000 has remained outstanding for nearly three years and is still treated by SVC Marine as an unpaid receivable under follow-up.
The Cong Minh 18 transaction shows both sides of second-hand vessel sale and purchase work: commercial success, practical deal-making, buyer-side financing pressure and the real financial risk carried by SVC Marine to close a vessel transaction.
Transaction Overview
- Vessel: Cong Minh 18
- IMO / Call Sign: 9631450 / 3WCY9
- Vessel Type: General Cargo Vessel
- DWT: About 3,207 DWT
- GT: About 1,599 GT
- LOA / Beam: 73.60 m / 12.30 m
- Main Engine Power: 735 kW
- Built: 2011, Vietnam
- Class / Registry: VR / Hai Phong, Vietnam
- Buyer: Iraqi buyer
- Delivery: 10 April 2023, Vietnam
- Sale Price: USD 650,000
- Vendor Financing: USD 100,000 extended by SVC Marine
- Outstanding Balance: USD 38,000 still unpaid after nearly three years
The Deal Structure
The buyer wanted a compact and economical general cargo vessel for regional trading. Cong Minh 18 was a practical fit for this requirement: a small Vietnamese-built geared general cargo vessel with moderate operating cost and useful cargo-carrying capability for short-sea trades.
However, the buyer had limited upfront capital. To close the transaction, SVC Marine agreed to carry part of the buyer’s payment burden through a USD 100,000 vendor-financing structure. This allowed the vessel sale to proceed and gave the buyer time to bring the vessel into service and stabilize cash flow.
This was a commercial risk taken by SVC Marine. Instead of only collecting commission and stepping away from the deal, SVC Marine carried direct financial exposure so the sale could be completed.
Vendor Financing Risk
Vendor financing can help close a vessel sale when the buyer has a real shipping plan but limited immediate cash. It can also create repayment risk for the party providing the financing.
In this case, SVC Marine extended USD 100,000 in vendor financing to the purchaser with an agreed repayment horizon. Although part of the financing was repaid, USD 38,000 remains unpaid after nearly three years.
This outstanding balance is important because it shows the practical reality behind some second-hand vessel transactions. A successful sale may still leave the broker, financier or deal originator carrying real repayment exposure long after delivery.
Why SVC Marine Took the Risk
SVC Marine agreed to vendor financing because the transaction was commercially possible and the vessel could serve the buyer’s intended regional cargo trade. The financing structure helped bridge the buyer’s funding gap and allowed the vessel to move from sale discussion to actual delivery.
The decision reflected SVC Marine’s willingness to make a difficult vessel transaction happen, but the unpaid USD 38,000 balance also shows why buyer credibility, repayment discipline and enforceable payment structure are critical in future transactions.
Work Handled by SVC Marine
SVC Marine handled the commercial and practical sale process for Cong Minh 18 from transaction discussion to delivery in Vietnam.
Our work included:
- Vessel sale and purchase work
- Buyer and seller discussion
- Commercial deal structure review
- Vendor-financing structure for part of the purchase price
- Vessel information and transaction follow-up
- Delivery and handover follow-up in Vietnam
- Buyer-side and seller-side communication during closing
- Post-sale repayment follow-up for the vendor-financing balance
What This Case Shows
The Cong Minh 18 case shows that SVC Marine’s work in ship sale and purchase can go beyond vessel introduction. In this transaction, SVC Marine carried commercial risk, created a financing structure, pushed the deal through and accepted delayed repayment exposure to complete the sale.
The case also confirms an important lesson: vendor financing should be treated carefully. A buyer may take delivery and operate the vessel, but repayment discipline is not guaranteed. Future financing structures should include stronger payment security, clearer enforcement terms and tighter risk control before delivery.
Lessons Learned
- Vendor financing can help close a second-hand vessel transaction, but it creates real repayment risk.
- Buyer credibility and repayment history must be checked carefully before any deferred payment is agreed.
- Security, guarantee, repayment schedule and enforcement terms should be stronger when financing is provided.
- A successful sale does not always mean the financial exposure is finished.
- SVC Marine carried real commercial risk in this case, including an unpaid USD 38,000 balance still under follow-up.
Result
- Cong Minh 18 was sold to an Iraqi buyer for USD 650,000.
- The vessel was delivered in Vietnam on 10 April 2023.
- SVC Marine extended USD 100,000 in vendor financing to complete the transaction.
- The vessel entered the buyer’s intended regional trading plan.
- A remaining USD 38,000 balance remains unpaid after nearly three years and is still followed by SVC Marine.
Related SVC Marine Services
- Ship Sale & Purchase Brokerage in Vietnam
- Vessel Sourcing Service
- Pre-Purchase Vessel Inspection in Vietnam
- Vessel Delivery & Handover Services
- Owner’s Representative Services in Vietnam
- Ship Management Services
Contact SVC Marine
For ship sale and purchase, vessel sourcing, buyer-side vessel search, second-hand vessel inspection, delivery attendance or post-purchase technical services, please contact:
SVC Marine S&P Desk
Email: shipbroker@svcmarine.com
General: info@svcmarine.com
Website: https://svcmarine.com/
SVC Marine Services Ltd
SVC Marine Services is a maritime services company serving shipowners, ship managers, operators, vessel buyers, charterers, cargo owners and trading companies across the vessel and cargo lifecycle.
Our services include ship sale & purchase, drydock supervision, afloat ship repair, owner’s representative services, ship management, shipping & freight forwarding, marine supply and spare parts delivery.
Based in Vietnam with an international structure in the United Arab Emirates, SVC Marine provides practical technical, commercial and operational services for vessel transactions, cargo movement, repair projects, port attendance and fleet operations.