Don't have cash to own a yacht? Why not hire one?

Ask Mr Eric Cheng, 34, the group managing director of ECG Group of Companies.

This 'borrowing' concept is behind his car rental business, ECG Car Rental and more recently, his luxury yacht chartering arm, SG Yacht.

Mr Cheng and his partner, Mr Wilson Sho, 36, managing director of SG Yacht, launched their luxury yacht rental business last September, amid the global financial turmoil.

Mr Cheng claims the company makes a net profit of $45,000 a month.

The take-up rate for his charters has been booming with a 75 per cent booking rate each month, he said.So attractive is the luxury yacht business that last month, a consortium of venture capitalists offered to buy them out for an undisclosed sum, Mr Cheng claimed.

He didn't want to reveal details.

Mr Cheng said: 'Our business model is to let you try first, and if you find it's what you really want, then go ahead, purchase it.'

The company's first yacht, a $700,000 40-foot boat, has been joined by a second boat, a $1.2 million, 50-footer. The third, a $1.5 million 60-foot yacht, is due to arrive in the third quarter of this year.

Affordable

Their success boils down to affordable pricing, Mr Cheng added.

For instance, a four-hour charter goes for $900, which is fairly cheap, especially if the cost is divided among a large group. A 50-footer yacht, for instance, can take up to 14 passengers.

Mr Cheng, a former steward with Singapore Airlines, said: 'In any down cycle, there is always a wealth transfer, there are always opportunities. While yachts are a high-end product, we've priced it affordably.'

Having good staff and partners also helps. Mr Cheng credits the success of the yacht-hire business to Mr Sho, who works 'very hard', and his committed staff.

On his part, Mr Sho who has known Mr Cheng for eight years said he's inspired by him.

After 8 1/2 years with SIA, Mr Cheng became a property agent with a leading real estate company.

He left the company in 2007 and is now focused on his own business. He is married to an accountant and they have two boys - 3 years old and 7 months.

Next up for SG Yacht is a yacht co-sharing programme which is due to roll out this May. For about bout $37,000, investors can co-share a luxury yacht for three years.