Machinery and Equipment Appraisals for SBA Lending
As an individual seeking SBA financing, an SBA lender may request a machinery and equipment appraisal. In the world of small business lending, making informed decisions is key for both lenders and borrowers. A comprehensive machinery and equipment appraisal can provide valuable insights for both borrowers and lenders. It also enables SBA lenders to assess the true value of collateral when making financing decisions.
Below we discuss reasons how to use machinery and equipment appraisals for SBA lending. Peak Business Valuation provides machinery and equipment appraisals for more than 80 SBA lenders across the country. We love helping SBA lenders across the United States with USPAP-compliant machinery and equipment appraisals. Whether you need an equipment appraisal for SBA 7(a) loans, 504 loans, or conventional financing, we can assist. Schedule a consultation today to learn more!
Purpose of a Machinery and Equipment Appraisal for SBA Lending
The primary purpose of a machinery and equipment appraisal for SBA lending is to determine the fair market value of company assets. At Peak Business Valuation, our certified machinery and equipment appraisers analyze this based on the equipment’s condition, utility, and market demand. Our SBA machinery and equipment appraisals are USPAP compliant.
Benefits of Machinery and Equipment Appraisals for SBA Lending
Obtaining a machinery and equipment appraisal for SBA lending has many benefits. Below we highlight just a few of the reasons a lender may request a machinery and equipment appraisal.
Accurate Loan Collateral Valuation
Through a machinery and equipment appraisal, you can understand further how this collateral can support the SBA loan. A machinery and equipment appraisal can help support the value of the machinery and business you are purchasing or financing. The SBA sets SBA collateral requirements, as such a certified equipment appraisal is often necessary. Peak Business Valuation, is a certified machinery and equipment appraiser and frequently performs SBA machinery and equipment appraisals.
Verification of Company Assets
A machinery and equipment appraisal can provide a verification of the company assets. Some of the items a machinery and equipment appraiser may verify include:
- Year, make, model, and condition of the asset
- Purchase Price
- Serial number of the asset
- Maintenance records
To perform a comprehensive machinery and equipment appraisal the above information must be provided. As a top SBA machinery and equipment appraisal, Peak Business Valuation can help you through the process of obtaining a machinery and equipment appraisal for SBA lending.
Regulatory Compliance
The SBA sets its own criteria for machinery and equipment appraisals for SBA loans. Many SBA loan programs require collateral requirements. As such, machinery and equipment can be included in the valuation of the business to support SBA loan requirements. Insurance agents and property tax assessors may also require a machinery and equipment appraisal to ensure adequate coverage and not overpay on taxes.
Informed Lending Decisions
At the end of the day, a machinery and equipment appraisal can help an SBA lender feel confident in their lending decision. With more collateral backing the loan, the less risky the SBA loan is and the more likely the SBA loan application will be approved. This can help the SBA lender feel confident they are covered in the event of any casualty loss.
We work with more than 80 SBA lenders across the country performing SBA business valuations and SBA machinery and equipment appraisals. For questions or to get started, schedule a free consultation.
Performing a Machinery and Equipment Appraisal for SBA Lending
Peak provides the following SBA machinery and equipment appraisal reports:
- Restricted Summary Machinery and Equipment Appraisal Report. This report estimates the value of the equipment and follows USPAP guidelines. This equipment appraisal requires an onsite visit to the location of the equipment. The equipment appraiser confirms asset information and then reports values for each asset.
- Restricted Desktop Machinery and Equipment Appraisal. This is another SBA equipment appraisal that follows USPAP guidelines. It does not include a site inspection. To prepare an SBA desktop equipment appraisal, the borrower provides key information. The equipment appraiser then uses this information to determine the machinery and equipment’s value.
Peak Business Valuation will help determine what type of SBA machinery and equipment appraisal you need. To order an SBA equipment appraisal click the link below to schedule a free consultation. We are a top machinery and equipment appraiser for lenders across the country.
How to Order an SBA Machinery and Equipment Appraisal
To get started with a machinery and equipment appraisal for SBA lending, schedule a consultation or call 435-359-2684. Through a consultation, we will determine the scope of the project. We will then determine the pricing and turnaround time of the SBA machinery and equipment appraisal. Following this conversation, you will receive an engagement letter providing all the details of the machinery and equipment appraisal.
Summary
When evaluating an SBA loan application, a machinery and equipment appraisal may be crucial for the SBA lender. As such, Peak Business Valuation is here to help! We perform machinery and equipment appraisals for SBA lending across the United States. Schedule a consultation today to get started with your SBA machinery and equipment appraisal.
