The financing of documented pleasure vessels is seen by many lenders as almost mystical in nature and consequently it's an area they have been discouraged from entering. Documented vessels are boats usually over 30m feet in length and are registered with the Coast Guard as U.S. flag vessels. This is one of several methods of recording ownership but it is the only one subject to a First Preferred Ships Mortgage.The primary purpose of this thesis is to illustrate a broad overview of the various aspects of this type of lending with its advantages, disadvantages, inherent problems and possible profitability. It provides a base of understanding the complexities with this type of lending to those institutions considering participation as well as whether to initiate loans direct, indirect, or through a marine service company.