For operators planning to purchase at equipment auctions, Business.Finance provides pre-approved low rate used machinery finance to provide bidder confidence. Bidding at an auction can at times be nerve-racking. How high should you bid? Do I have the funds to pay that price? Will I have my credit approved in time to settle? Pre-arranging your machinery credit ahead of the event, may remove many of doubts and provide confidence to secure the machines required at these sales.
Purchasing second-hand machinery at sales events can be an astute move. Especially in the current economic climate of higher operating costs. Quality used machinery can present a cost-effective acquisition compared with purchasing new. But acquiring goods at these events can require pre-planning, especially when funding is required to settle the successful lots.
With our specialist lending services, operators can be well-prepared to bid on the day with their funding approved.
Options for Securing Finance for Equipment Auctions
When buying at sales events, bidders can choose whether to arrange their credit prior to attending or after they have successfully bid on a lot. Having funding approved before goods are purchased is referred to as pre-approved credit and opting for this strategy can provide bidders with a range of advantages on the day.
The same business options are available for funding goods, regardless of when the application is submitted and approved. For assets such as machinery, those products include Leasing, Rent-to-Own, Chattel Mortgage and Commercial Hire Purchase. Selecting the most appropriate product may require a discussion with an accountant. Arranging credit ahead of time, may allow the necessary time to conduct these discussions.
The same interest rate would be offered for the applicant for pre and post buying applications, unless lenders change their rates in the interim and subject to the specifics of the machinery purchased. The Reserve Bank makes rate decisions at their Board meetings but lenders may pre-empt these decisions with their own changes.
While the financial position of the applicant is a key determinant of interest rate offers, with used goods, the specifics of the machinery would also be taken into account. Where a specific lot is earmarked to bid on at a sale and the details can be provided, a more accurate credit offer may be obtained.
If a decision as to what to bid on is made on the day, any pre-approved offer may need to be amended post-sale, to reflect the goods purchased.
A number of key advantages can be realised by those with pre-approved credit at a sale. They know the credit limit for their funding and can confidently bid to that level. They can have the assurance of secured funding to capture good value machines at great pricing. They may avoid any worries about being in a position to settle the purchase in the timing set by the sale house.
If a bidder does not proceed with pre-approved credit, we can assist with fast approvals on funding for successful bidders after the sale. Many applications can be approved in 24 hours and we assist with settlement to help bidders meet the required deadline.
If attending a sale and a lot of interest comes up, bidders can use our Commercial Finance Calculator on their phones to calculate credit estimates.
Whichever way to proceed is your preference, our specialist lenders, lower rate funding and expert resources are available to assist in securing affordable funding on machines acquired at sales.
Factors to Consider When Buying Second-Hand Equipment
With many operators facing pressure from higher materials, supplies, fuel and wages costs, the prospect of paying a lower price for machinery can be extremely appealing. The lower price of used compared with new machines can mean less credit to borrow and lower monthly repayments which may ease pressure on current cash flow. But there are a number of factors that used asset buyers requiring credit should be aware of.
When working out credit estimates, be aware that used goods credit may have a higher interest rate than new goods and a borrowing limit may be set by the lender. For those planning ahead and comparing their options, request a quote from us for the used and the comparable new model.
When deciding on the balloon or residual, ensure that value is a realistic idea of the value of the goods when the balloon is due for payment. This amount will be due at the end of lending term and if trading in or selling the goods to upgrade at that time, the preference will be for the amount owed to be in line with the price received.
Assets We Finance bought at Equipment Auctions
While we’ve focussed on machinery sales in this piece, we do provide commercial lending services for all types of assets required by an enterprise purchased at sales events. Goods bought at sales that we fund include plant and machinery of all types as well as trucks, vans, heavy vehicles, motor vehicles, office furniture and fixtures, retail fit-outs and many others.
Contact Business Finance on 1300 000 033 to get machinery finance approved to buy at equipment auctions
DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.
