Auction deposit due and need funds fast?

Auctions reward buyers who are ready. When the hammer falls, the winning bidder usually signs an unconditional contract on the spot and pays the deposit that day. There is no finance clause and no cooling-off period in most auction sales. For a business buying premises, a development site or another asset, that means the money needs to be lined up before the bidding starts.

Before auction day

• Talk to your conveyancer or solicitor about the contract, special conditions and the deposit.
• Know your limit, including stamp duty and costs, and stick to it.
• Arrange the deposit so it can be paid on the day.
• Line up settlement funding for the balance, or a backup if your main lender may not be ready.

Fast funding for the deposit

If the deposit will come from equity in another property, a property-secured loan with no valuation can be approved within the hour. Give yourself a few days before the auction so documents can be signed and funds are cleared in time. Interest can be prepaid or added so there are no repayments while you settle the purchase.

When the clock matters more than the reading, send your enquiry first. It takes about 60 seconds.

If you win and the main finance runs late

Unconditional contracts mean settlement must happen on the agreed date, regardless of your bank’s timetable. If the main lender is not ready, a bridging loan can cover settlement and be repaid when the bank funds. Talk to us before auction if you think this could happen, so the backup is ready.

Scenario	Fast option
Deposit from equity in another property	Caveat or second mortgage, no valuation
Main lender approved but slow	Bridging loan to settle on time
Shortfall after the main lender’s valuation	Second mortgage or caveat for the gap

A worked example (illustrative)

A Melbourne cafe owner wants to bid on the freehold of her shop at auction. Her bank has pre-approved most of the price but cannot fund the deposit in time. A week before the auction she offers her home as security and is approved within the hour for a caveat loan covering the deposit and stamp duty. She wins the auction, pays the deposit on the day and settles on schedule.

Check your state’s rules

Auction rules, deposit conventions and stamp duty differ between states. Your state revenue office publishes duty information and calculators, and your conveyancer will explain local practice.

Set your ceiling before you raise your hand

Auctions are designed to stir emotion. Decide your maximum price, including duty and costs, and the most you will borrow before the day. Having fast funding lined up is about bidding with confidence, not about stretching beyond what the business can carry.

Get these ready first

Before you start, check you can lay your hands on:

• Auction contract and special conditions
• Deposit amount and how it must be paid
• Details of the property offered as security
• Main lender pre-approval
• ID for all owners

Where the time usually goes

If funding is slower than expected, it is usually because of:

• Arranging funding after the auction
• Not checking the contract’s settlement terms
• Underestimating stamp duty
• Co-owners of the security property not available

Get the form right, get funded faster

The enquiry takes about 60 seconds, and those 60 seconds decide how smoothly everything after it goes. Accurate figures for revenue and the amount, a straight answer about credit history and a clear yes or no on property mean the assessor can move straight to the decision. Guesswork means rework, and rework is the enemy of a 24-hour turnaround.

Quick recap

• Auction contracts are generally unconditional
• The deposit is usually due on the day
• Arrange funding before you bid
• Property-secured funding needs no valuation

How the 24-hour clock works here

The clock starts when you submit the enquiry. In business hours a real person usually picks it up within minutes, checks the amount and purpose and asks for what is needed. For unsecured funding that is mostly bank statements. For property-secured funding it is the property details, with no valuation required. From there, approval can be given in as little as 15 minutes and is commonly given within the hour. E-signing and payment follow, and funds within 24 hours is a realistic target when everything is ready.

What to do next

If this sounds like your situation, the next step takes about a minute. There is no credit check to enquire, your details are not sprayed to multiple lenders, and a real person picks it up. The more accurate your answers, the quicker the match. Enquire now.