Smart business owners know that they need to be as finance-savvy as possible when making big transactions for their company. From acquiring high quality products and equipment to finding the best deals, we know you want to be able to get the most bang for your buck.
Auction financing is a great way to get your hands on heavy equipment, specialty trucks, dump trucks, construction equipment, industrial equipment, and more, without having to pay full price. Virtually anything you need can be found at an auction and most of the time, that equipment, tool, or item is still just as useful even if it’s used.
Auction Financing Basics
To understand how beneficial auction financing is for your business, it helps to understand the fundamentals of how it works.
At an auction, you’ll find a range of items available for sale from previous owners. Those tools, heavy equipment, and trucks could have been acquired by the auctioneers for a wide range of reasons, including business bankruptcy, a business liquidating its equipment to upgrade to newer equipment, and more.
Typically, items being sold at an auction will only be at a fraction of the cost you would spend even if you bought used or new. And due to the nature of auctions, sometimes you can get a steal on price if there’s nobody else to compete against your offer.
When considering buying at an auction, make sure to take some precautions with the heavy equipment or items you are considering purchasing. All items sold at auctions are sold “as is,” meaning that once you buy it, you can’t return it.
This makes some auction purchases relatively risky but very valuable if you find good heavy equipment at the right price.
Always make sure to acquire all of the information possible about the industrial equipment before making your bid, such as available warranties, mileage, equipment’s release dates, see if there have been any damage or alterations, and so on.
Once you identify that a piece of heavy equipment would be a great purchase for your business, now it’s time to place your bid. But what happens when you don’t have the capital to make the bid, or worse, what happens if you just needed a little more capital to get the winning bid?
That’s where auction financing comes into play. Heavy equipment financing gives you all of the financial leverage you need to keep up with all kinds of auctions, so that you can acquire useful equipment, tools, and items for your business at reduced prices.
Let’s take a look at 5 big ways that auction financing can improve your business. When you have questions about auction financing, give us a ring or send us a message and we’ll be happy to help!
1. Provides Buying Power
With auction financing, you suddenly have a virtually endless amount of funds available to you, which gives you incredible buying power over other bidders at any auction. With heavy equipment finance companies behind you, you won’t have to worry about missing out on the winning bid because you didn’t have a little extra funding available.
You’ll be able to bid confidently knowing that when you need the funds, you'll have them ready for you.
It’s even beneficial for businesses that may have their cash flow and capital tied up in other parts of their business: auction financing suddenly takes care of any limits you would have had without an equipment financing company supporting you.
You also won’t have to worry about getting money approved during the auction, as you’ll be able to walk into the auction with pre-approved funds from your heavy equipment financing company. This gives you a lot of flexibility in your buying decisions.
2. Allows You to Purchase Newer Equipment for Less Money
Imagine if you could buy newer equipment at used pricing or less! That’s the opportunity you have with an auction and having auction financing as a resource.
It’s not uncommon to think that equipment and other items sold at an auction are old or heavily used, but every now and then you’ll be able to find a new (or near-new) piece of construction equipment available for bidding. Some construction equipment may even still be under warranty at an auction.
Depending on the auction, you may even be able to get into a bidding opportunity for newer construction equipment with less people than you might think, and this gives you the opportunity to snatch up newer heavy equipment at a smaller price than you might expect.
3. Allows You to Increase Your Business
Acquiring any important piece of construction equipment, tools, or trucks for your business will contribute to the growth of your business in some way. It just happens that acquiring your heavy equipment from an auction will mean you’re spending less on your business purchases than you would have to elsewhere in most cases.
Auctions are a great way to replace existing, old equipment with newer or less-used items. Having up to date and more efficient equipment can help you save money over time.
4. Frees Up Your Operating Capital
When utilizing the power of construction equipment financing, you won’t be tying up your available cash flow and capital on bidding opportunities at an auction. Instead of using your own money, you use the funds provided by construction equipment financing companies.
This can give you a peace of mind knowing that you’ll always have cash available on hand for other daily operating expenses and expenses that pop up unexpectedly. And you can even combine your available funds with what a lender is providing you to have even more buying power at an auction.
5. Opens Up Your Options
Auction financing increases your options and opens up more avenues as a business owner. You can acquire new and used equipment, find equipment that’s in good shape, get great deals, and increase your business with lower costs.
You’ll be able to take on more business, bring in more customers and clients, and take on new jobs with the heavy equipment you purchase at an auction. And that equipment can be more easily acquired with auction financing.
Contact Trust Capital to learn more about how auction financing can help you succeed at auctions for your industry. With auction financing, you know you won’t ever be without the resources necessary to win the bid on a piece of equipment that will help your business.
Final Thoughts on 5 Ways Auction Financing Can Improve Your Business
In this blog post we talked about how Auction Financing can help you purchase or acquire the heavy equipment you need for your business.
Although great rates can be expected in an auction, it’s important to be mindful of the heavy equipment that you are buying.
Please be sure to conduct a thorough inspection for any signs of major wear and tear. It is recommended to request maintenance records to give you a clear insight on its condition. Most importantly, ensure that the seller is the owner of the equipment to avoid any legal problems.
The risks can be even greater when participating in an auction that is conducted through the Internet. The anonymity and freedom the Internet offers makes it possible for scammers and frauds to flourish, particularly in auctions.
If you have questions or want to know more about auction financing, you may reach Trust Capital at (866) 458-4777. We can offer your company a no obligation construction equipment financing approval to go shopping at an auction.