Lenders, what is your borrower’s collateral really worth?

Lenders, do you use an outside appraisal firm to substantiate the value of the hard assets your business clients are pledging for their loans? When considering engaging an outside appraiser, make sure the appraiser has the requisite knowledge and experience required to perform a professional quality appraisal. Collateral for business loans is an integral layer of security for lenders. The collateral can vary based upon the size of the loan but it can range from small equipment and furniture to massive industrial machines.

For banks that participate in the Small Business Administration (SBA) loan program, independent appraisals may be required for certain business borrowers for. SBA appraisal requirements for those include:

1. It be conducted and written by a qualified appraiser.
2. It be conducted no more than12 months prior to the loan application.
3. It must be conducted in compliance with the current Uniform Standards of Professional Appraisal Practice (USPAP) guidelines. USPAP is the generally recognized ethical and performance standards for the appraisal profession in the United States.

Our company, Certified Asset Appraisals, works with many lenders throughout the U.S. for commercial equipment appraisals in a wide variety of industries. These include construction, industrial, oil field, medical, restaurant, hospitality, and transportation. We can perform on-site asset inventories and inspections as well as desktop appraisals of the assets being used as collateral. Each appraisal is geared to meet our lender client’s needs with quality appraisals, and fast turn-around times.

When you are ready and need an appraisal company, our qualified experienced appraisers are ready to help. Email us or give us a call.