Repo Realities: Inside the World of Commercial Repossession
Repo Realities: Inside the World of Commercial Repossession
Repo. When people hear about “repossession,” they usually think of cars and tow trucks. But the term also applies to the recovery of many other assets, including restaurant equipment and furniture.
Any items purchased with credit or used as collateral for a loan can be repossessed. For restaurant and business owners, that property may include appliances, furniture, and even dining ware or silverware.
The Other Side of Repossession
It may seem like the end when restaurant and business owners default on payment, but for banks and lending institutions tasked with recovering collateral, the difficult work is just beginning. Repossessing large commercial items requires not only removing and storing them, but hopefully, figuring out how to sell them to recoup some of the financial loss incurred from the foreclosure.
All that takes time, money, and resources — adding to the burden a creditor must shoulder. Without a standard process to follow or a designated broker to rely on, many banks face additional stress and headaches attempting to collect on legitimate unpaid debts overdue by months or longer.
Auction It Off and Recoup Losses
Fortunately, there is another option. Working with an auction site that provides repossession services allows banks and leasing institutions to take a hands-off approach to the collection, transportation, storage, marketing, and selling of repossessed appliances and equipment.
Auction Team Take Over and Facilitation
When an auction site takes on the task of recovering equipment for a leasing company or bank, the first challenge is locating the equipment.
Craiglist offers great deals on apartments, furniture and appliances — and more than one desperate restaurateur has used the site to offload equipment slated for repossession. When a restaurant owner, who has defaulted on his loan, tries selling his tables and chairs on Craigslist, the auction company, hired by the furniture leasing company, has the opportunity to intervene and recover the items.
Once the equipment is located, auction sites undertake the difficult task of getting the equipment out of wherever it is located. They proceed to the site unannounced, often accompanied by an entourage of plumbers, electricians, and employees of the local utility company. Coordinated by the auction company, the team deploys to disconnect refrigerators, deep freezers, and perhaps, even a three-bowl sink. In the case of the tables and chairs recovered from Craigslist, the items are sold by the auction site, and the proceeds go back to the leasing company.
Get Your Money Back
Contracting a full-service auction site to repossess and sell commercial property requires no out-of-pocket fees and no up-front payment. Any size or type of equipment can be collected, catalogued, and auctioned off through a professional online environment that connects interested parties directly with available merchandise.
Online auctions provide a unique and exciting setting for registered and qualified buyers to bid on sales of bulk goods or individual appliances and fixtures. Even used equipment sells for up to 80% of its original value, and recouping monies that may have been lost indefinitely can relieve the financial headaches of banks and lending institutions.
Let’s face it — foreclosures and repossessions are not fun for anyone, owners or lenders. But once they become realities, working to create closure through the selling of equipment and property helps heal the wounds of investment mistakes just a little bit more quickly.
PCI Auction Group makes selling restaurant and other industrial equipment safe and easy. We also offer full-service auction and repossession services to help liquidate seized commercial property. With warehouses throughout the country, we're able to market your assets to a wide audience through our easy-to-use, interactive environment. Learn more at https://www.pciauctions.com or call (888) 883-1388 for a free appraisal.