Equipment Lending
Buying Equipment at Auction Without Getting Burned
The iron is the application. This guide covers how that works for one corner of equipment finance.
Equipment Lending
The short version, then the substance.
Key Takeaways
- Why auctions are the discount channel
- The preparation
- After the hammer
Why auctions are the discount channel. Dealer retail carries dealer margin. Auctions clear fleets, repos, and surplus at wholesale, and the buyers with ready capital take the best of it. The discount is real, and so is the as-is risk.
The preparation. Inspect or hire an inspection, set a max bid off resale value not excitement, and have funds arranged before the catalog closes. Pre-arranged asset-based capital lets you bid like cash, because functionally it is.
After the hammer. Auctions want payment in days. Your financing has to match that clock, which is precisely what bank equipment loans cannot do and asset-based lenders can. Tell us before the auction, not after you have won.
The South Texas angle. Averlend underwrites this every week in San Antonio and across Bexar County. If you are working a deal in Alamo Heights or anywhere else in the metro, the theory above comes with a local desk attached: see our San Antonio lending page or send the deal directly.
Questions
Quick answers from the Averlend desk.
The Averlend Promise
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