Machinery and Equipment appraisals are becoming a common request from banks and lenders that are currently lending in today’s environment. Having been burnt by the bubble of real estate assets and the loss of value that have caused the worth on their books to shrink, lenders have started to see the benefit of getting a certified USPAP (Uniform Standards of Professional Appraisal Practice) compliant machinery and equipment appraisal for their business loans.
Historically, lenders would rely on book value or uneducated opinions to place values on these assets. These values do not withstand scrutiny with bank examiners, SBA, IRS, attorneys, CPAs, courts, and others. Also, with the possibility of the loans going bad, lenders need to have an accurate estimate of what the machinery and equipment may produce when sold off in a loan-gone-bad situation.
Using a third-party, certified machinery and equipment appraiser can go onsite to make sure the collateral exists while providing trusted values. A good referral for me would be a commercial/SBA loan office.