What happens if I don’t spend all my APA?

Answer

If the actual charter expenses are lower than the APA paid, the unused balance is normally returned to the charterer after the final accounts have been settled.

The exact process depends on the charter agreement and how the yacht's expenses are administered. The captain or crew should maintain records of expenditure throughout the charter.

Analysis

APA is intended to cover actual charter expenses rather than function as a fixed additional charge. Conversely, if actual expenses exceed the amount advanced, the charterer may be required to provide additional funds.

Broker comment

We recommend thinking of APA as a working expense account for the charter. The final amount depends on what actually happens during your trip, which is why an accurate itinerary and good preference sheet are useful.