Wilmington-headquartered NextBoat, a pre-owned boat company formerly known as Off the Hook Yachts, has secured up to $7.2 million in debt financing to support its boat inventory. 

According to SEC filings from late October, the financing includes a $5 million revolving line of credit from RLLT Capital LLC for working capital and inventory purchases, plus up to $2.2 million in bridge financing from BPC Management LLC. 

“NextBoat intends to deploy the capital primarily to acquire pre-owned boats, support wholesale transactions and provide additional flexibility as the Company executes its strategy,” the filing states. 

The bridge loan carries a 15% interest rate, while the revolving credit line carries 12.99% interest. 

“Since stepping into the CEO role, I’ve made capital allocation a priority,” said Ross Tannenbaum, CEO of NextBoat, in a press release. “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.”

Tannenbaum was named CEO at the end of September. The company reported record revenue in its second-quarter earnings in August and, since going public last year, announced it expanded its inventory financing capacity to $60 million through a financing agreement with Red Oak Inventory Finance LLC. The company has acquired two firms and rolled out an AI-based marketplace platform. 

According to a press release, the company is now focused on developing a nationwide network “to connect boat owners, buyers, brokers and dealers,” with the goal of making it easier for customers to buy, sell and trade boats remotely. 

“Our vision is to make buying and selling a boat simpler and more accessible, wherever the customer happens to be,” said Jason Ruegg, founder and chairman of NextBoat in the release. “We are building a network that can find the right boat, connect it with the right buyer and help bring the transaction together.”

Ruegg and Ruegg Capital Group have pledged a combined 10.37 million NextBoat shares as collateral for the financing, representing approximately 41.3% of the company's outstanding shares, according to SEC filings.

The company is developing a dealer platform to make it easier for marine dealers to connect with the company. The portal is currently in a testing phase with Florida-based MarineMax, according to the release. 

“Our dealer portal is an important piece of the nationwide network we are building,” said Tannenbaum in the release. “By making it easier for dealers to connect with us and receive offers on their pre-owned boats, we believe we can help our partners move inventory while giving NextBoat access to more opportunities across the country. Our work with MarineMax is helping us test and refine that process as we prepare for broader adoption.”