Top Reasons for a Certified Equipment Appraisal
There are many reasons to obtain a Certified Equipment & Machinery Appraisal. Here is a brief list of the top reasons equipment appraisals are obtained.
Loans – More banks are relying on certified equipment and machinery appraisals to justify loan decisions for portfolio loans. First this satisfies their internal auditors and secondly it satisfies the FDIC or OTS during their federal exam. Also when these loans are sold on the secondary market, the certified appraisal assists in defending the loan to value. The Small Business Administration (SBA) also require certified equipment appraisals be complete on collateral for various 7a and CapLine programs.
Leases – With leasing equipment and machinery so popular, lessors are requiring appraisals to be complete so they can justify their loan decisions. In addition, if the IRS audits the lease company. The certified appraisal will help justify the loan decision.
Insurance – Business owners need to prepare for worst case scenarios and having their equipment and machinery appraised is the best option to place an accurate value on the equipment. Whether the certified appraisal is being ordered by the Insurance Company or Business Owner, having an accurate value will help during the worst case scenarios where the business owners have to utilize their insurance.
Purchase Agreements – If a Business is purchasing a piece of equipment or machinery. A certified equipment and machinery appraisal will help both parties understand the true value of the piece of equipment under agreement to be purchased. Then in return this appraisal can be used for insurance purposes and sometimes lending purposes as well.
Mergers and Acquisitions – A merger or acquisition can be a complex transaction. A certified equipment and machinery appraisal will verify the equipment, its value, condition and location. With so much at stake during the M&A process, it is vital to make sure that all parties are protected by ordering a certified equipment appraiser from Truman Mox.
These are just a few reasons that certified equipment appraisals should be ordered by a certified equipment appraiser. In addition you may also need an appraisal for divorce settlements, legal support, converting from a C – Corp to an S- Corp, bankruptcy, estate planning and loan workouts.
Truman Mox can assist you with all these matters.July 26, 2012 12:00 am