Day four of a seven-day charter. The principal has added an overnight in Portofino, two helicopter transfers and a case of wine you did not budget for. You open the APA tracker and realise you are burning money faster than the days are passing. The next conversation you have decides whether this charter ends in a refund or an argument.
What the APA is
The Advance Provisioning Allowance is the charterer money, held by the yacht, to pay the running costs of their charter. It is not income, it is not the owner money, and it is not a budget the yacht may spend freely. It is a float held on trust, and it is reconciled to the cent.
Typically it is a percentage of the charter fee, commonly around 30%, payable with the final fee instalment before embarkation. Higher percentages are usual for fuel-hungry itineraries or remote cruising.
A worked charter
Charter fee EUR 350,000 for one week. APA at 30% = EUR 105,000, received before embarkation.
| Expense | EUR |
|---|---|
| Fuel | 38,400 |
| Berthing and port fees | 22,150 |
| Provisions and beverage | 14,780 |
| Guest transport and shoreside | 6,320 |
| Communications, laundry, sundries | 3,950 |
| Agent fees and local charges | 4,600 |
| Total drawdown | 90,200 |
| APA received | 105,000 |
| Balance to refund the charterer | 14,800 |
The top-up conversation
Watch the burn rate, not the balance. By the end of day four this charter had spent EUR 82,000, leaving EUR 23,000 — about 21.9% of the original APA with three days to run. That is the trigger point. You go to the captain, then the broker, with a forecast: At current spend plus the confirmed Portofino berth, we project a shortfall; we recommend requesting a top-up of EUR 25,000. Never let a charter run out of APA money silently, and never fund the gap from ship funds.
The running statement
Keep a live statement from day one, updated daily, with every receipt scanned and attached.
- Show the opening APA, each expense by category and date, the running balance and the projected close.
- Present it whenever the guest asks, with no delay and no defensiveness.
- Some yachts brief the principal or their PA at mid-charter as a matter of course. It removes every surprise.
Final settlement
At disembarkation you produce the final APA statement: total received (including top-ups), total spent by category, supporting receipts, and the balance. A positive balance is refunded to the charterer through the route agreed in the agreement, usually via the broker or the central agent, promptly. A negative balance is invoiced and, awkwardly, must be settled before the guests leave. That is why you never get to a negative balance by surprise.
Onboard Notes
- Never mix APA funds with owner funds. Separate account, separate ledger, separate reconciliation.
- The gratuity is not part of the APA and should never be spent as if it were.
- A late refund damages the yacht reputation with the broker faster than almost anything else. Set an internal deadline for settlement, and beat it.