AUCTION FINANCE
Auction Finance is a specialised short-term loan designed to buy auction properties. It offers quick funding to secure a purchase, often within tight deadlines. This finance type benefits investors who need immediate funds, as auctions require fast payment upon winning a bid. Auction Finance typically covers a significant portion of the purchase price and must be repaid through refinancing or selling the property, usually within 6 to 12 months. It's a crucial tool for property investors in competitive auction environments.
WHAT IS AUCTION FINANCE?
NO UPFRONT FEES
NO BROKER FEES
Key benefits of Auction Finance:
PURPOSE & USE
Fast funding for auction purchases
Ideal for property investors
Covers a major portion of the price
Enables competitive bidding
FEATURES & BENEFITS
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Quick approval and disbursement
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Short-term financial solution
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High loan-to-value ratios
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Flexible repayment options
CONSIDERATIONS & RISKS
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Requires swift repayment
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Higher interest rates
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Risk of overbidding
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Need for an exit strategy
Experienced. Trustworthy. Tailored.
Clever Commercial is an award-winning brokerage with over 30 years expertise in providing bespoke property financing solutions. Competitive rates, flexible criteria, and unrivalled service. Build your future - partner with us.
WHY CHOOSE CLEVER COMMERCIAL?
FREQUENTLY ASKED QUESTIONS
What is Auction Finance?
Auction Finance is a short-term loan used primarily to purchase property at auction. It provides rapid access to funds, enabling buyers to meet the quick payment terms typically required in auction settings.
Who is Auction Finance suitable for?
It's ideal for property investors and developers who frequently purchase at auctions and require immediate funds to secure their bids, especially when traditional funding methods are too slow.
What are the key risks of Auction Finance?
The main risks include higher interest rates than traditional loans, the pressure of fast repayment schedules, and the potential financial strain if the property doesn't sell or refinance as planned.
How quickly do I need to repay Auction Finance?
Repayment terms vary but are usually between 6 to 12 months. The loan is typically repaid by selling the purchased property or refinancing with a longer-term financial solution.