Debt is a terrible thing for anyone to have to experience, and likewise the economic crisis and the effect it’s having on many people’s bank accounts is equally as terrible in many ways. However at the end of the day these do also provide advantages for the savvy who find ways to take advantage of this debt and to benefit from other people’s problems. It sounds harsh, but it’s at least better than letting their struggles be in vein and following suit. One example of this is bank auctions, which provide an ideal way for small companies and even individuals who may be in debt themselves to get a range of great things at very good prices.
So what are bank auctions and what do they have to do with debt? Well the other name for bank auctions is ‘business liquidation auctions’ and this gives you some clue as to what they provide. Essentially bank auctions are auctions held by banks in order to sell off the various items that they have repossessed from businesses that have declared bankruptcy. Most businesses owe several debts to banks and these are for a range of things from business start up loans to mortgages and more. This is fine as long as that company’s income exceeds its financial commitments. When this is no longer the case that company will begin to lose money at an increasing rate and eventually will have to declare itself bankrupt. At this point the banks are then often legally entitled to reclaim everything from furniture to property in order to make back that unpaid debt. They then auction these at bank auctions and sell those things to the highest bidder.
This is ideal for a new business startup for several reasons. First of all it means that most likely you will be able to buy everything you need for the office, from computers to furniture to equipment. At the same time much of these things are going to be in very usable sets that match or that compliment each other – after all many of the things are going to be from the same office or business and have been chosen for their effectiveness by that company.
At the same time you are getting these things very cheaply from bank auctions and essentially for a second hand price. However unlike buying from other second hand auctions – where the quality and condition are negligible – these are items that haven’t been owned fro very long in most cases and that the company hadn’t seen fit to sell suggesting they were still in good working order. Most businesses go bankrupt within their first year – a scary but true fact – but for you that means that bank auctions are often selling furniture and IT that are less than one year old.
1 thought on “What Are Bank Auctions?”
A friend of mine sells used stuff. He travels extensively to look for such bargains, as you mentioned, and sells them profitably.
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