Banks Turn to Specialist Auction Houses for Machinery Disposal

Surplex, a used machinery auction house operating across continental Europe alongside Troostwijk, has reported a shift in how banks and financial institutions dispose of capital goods taken as loan collateral.

According to the company, banks previously relied largely on direct sales through machinery dealers when borrowers defaulted on loans secured against industrial equipment. Surplex argues this approach often meant assets were sold quickly but below market value, as dealers prioritise speed over price.

Auctions offer competitive bidding

Surplex says auctions create competition among bidders, allowing prices to be set by demand rather than a single buyer’s offer. The company contends that specialised, internationally focused auction houses give banks access to a wider pool of industry buyers, which can drive more dynamic bidding and stronger returns.

Alexander Kosir, Surplex’s Country Manager in Austria, said local presence and market knowledge remain important for banks and financial institutions, given the specific legal conditions in each country. Surplex and Troostwijk together form part of what the company describes as the largest network of auction houses in Europe, with access to around 300,000 potential bidders worldwide.

Addressing bank concerns

Kosir said close personal contact has helped Surplex build relationships with banks in Austria, alongside similar banking networks maintained in other markets. The company reports that roughly eight per cent of its projects this year were commissioned by banks and leasing companies.

Surplex identifies time management and the risk of low minimum returns as the main barriers that have historically discouraged banks from using auctions. Kosir said specialised auction houses can address these concerns through efficient project management and the option to set minimum prices on individual machines or plants, protecting sellers from returns falling below market value.

Kosir said the aim of Surplex’s auction services is to help banks and leasing companies realise the full value of secured machinery and equipment.