The practical answer
Some associated charges may be considered, but auction fees do not necessarily add recoverable value to the asset.
Obtain the auction terms and calculate hammer price, buyer’s premium, VAT, loading, collection and storage. Send the full expected invoice breakdown before bidding.
Ask what amount is eligible and how much cash the business needs. Set a maximum bid based on the complete acquisition cost and finance conditions rather than the hammer price alone.
Commercial finance is subject to status, lender approval and the specific asset and transaction. The right structure depends on the complete circumstances of the business.
What should I do next?
Have the asset details, supplier information and an outline of what the business needs ready. DCF can then discuss the requirement and identify which lenders may be suitable.
Read: Auction asset finance →