What happens if I spend more than my APA?

Answer

If the charter expenses exceed the APA advanced, the additional amount is generally payable by the charterer in accordance with the charter agreement.

The captain or crew may keep the charterer informed about significant expenditure during the trip, particularly where the expected budget is changing materially.

The exact accounting and payment arrangements depend on the charter contract.

Analysis

APA is not normally intended to impose a spending limit on the charter. It is an advance against anticipated expenses.

The most useful way to manage it is to make sure the broker and crew understand the group’s intended cruising pattern and spending preferences before the charter.

Broker’s advice

If you’re planning extensive cruising, frequent marina stays or particularly elaborate provisioning, we’ll discuss that before departure so the APA estimate reflects how you actually intend to use the yacht.