Today I found an interesting article about a series of reverse dutch auctions for low rate loans held by an infrastructure finance company called SREI in New Delhi India.
SREI brings together construction equipment manufacturers on one side, and contractors engaged in construction activities on the other. The manufacturers present the financing for their equipment and the bidding is conducted on the interest rate in a dutch reverse auction. The interest rate will start high, and will be automatically lowered until the first contractor accepts to buy at that interest rate.
The concept seems to pay off as they are already planning to spread the concept to 9 more cities in India and to other countries abroad.
Here is the full article:
http://profit.ndtv.com/2008/08/23204446/Reverse-auction-for-low-rate-l.html
