9:24 am, October 27, 2008
AUTOEBID is to expand, after securing a ‘substantial’ long-term business loan from RBS.
The reverse auction site, which allows dealers to compete against each other to offer customers the biggest discount, now plans to develop its online business.
The firm says it’s proof that finance is still out there for small businesses with solid models – and will now be taking on three more staff courtesy of the finance package.
Amin Saleem, Autoebid’s founder and MD, says: ‘For small firms fighting the downturn, access to finance can mean the difference between ‘business as usual’ and bust.
‘This new package from RBS means we can expand and improve our operation, bring more people onto the payroll, and continue to offer spectacular savings to consumers looking to buy a new car.’
The company says this bucks the trend of small firms in plight – highlighted by a Daily Mail campaign to ‘save struggling small companies from crippling bank charges and called-in loans’.
The Federation of Small Businesses has warned that many firms risk folding if they can’t access affordable finance. And the Government has announced plans to bring bank bosses and businesses leaders together, to sort the mess out.
So what’s Autoebid? Well, with access to over 1,500 motor dealers in the UK, it says it can supply any vehicle at a substantial discount. Prospective buyers state the make and model required and the maximum price they are prepared to pay, forcing suppliers into a bidding war for their business.
As a benchmark for both buyer and supplier, the site displays a discounted guide price for every vehicle.
Auctions can be concluded in as little as two days, saving the buyer considerable time and aggravation – and enabling dealers to sell their stock quickly with virtually zero marketing costs. The customer is charged commission of up to £295 plus VAT.
