Auction finance
Auction finance settles the hammer price and the buyer's premium inside the auction house's payment window, then converts to a longer agreement or is repaid from a sale.
- FOR
- Business and certified buyers
- USED FOR
- Settling a hammer price inside the auction house's payment deadline
How it works
Preparation is the whole job. We take your maximum bid, the lot and the catalogue details before the sale, so the funding is agreed before you raise your hand.
Budget for the buyer's premium on top of the hammer price, and for VAT where the lot is sold on a VAT qualifying basis.
Auction houses give you a fixed number of days to pay. Missing it can mean interest, storage charges or losing the lot, so the timetable drives everything.
After completion the facility either runs on as hire purchase or lease purchase, or it is repaid when you sell.
What a lender looks at
- 01The lot, the catalogue description and the estimate.
- 02Your maximum bid and the deposit you will put in.
- 03Condition reports, and an inspection where the sale allows one.
- 04How the short term facility will be repaid or converted.
Not for: Bidding as a private individual for personal use, where the finance would be regulated consumer credit.
Questions
How quickly can auction finance be arranged?
It depends on the lender and on how complete your paperwork is. Bring us the lot before the sale rather than after it, so the funding is in place when you bid.
Does the finance cover the buyer's premium?
Sometimes. Lenders differ on whether they advance against the hammer price alone or the total invoice, so we confirm it before the sale.
What happens if I am outbid?
Nothing is drawn and nothing is owed. The agreed facility simply goes unused, and it can usually be pointed at another lot.
Finance on this page is arranged for limited companies and LLPs, for sole traders and partnerships borrowing over £25,000 wholly or predominantly for business purposes, and for individuals borrowing over £60,260 who have signed a high net worth statement. Send us the details either way: cases outside that are handled through one of our regulated partners, and we tell you who before anyone contacts you.
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