Equipment appraisals for lending and collateral.
A lending appraisal from Lukes & Lukes is an independent, USPAP-compliant opinion of value for the equipment behind a loan. OLV, NOLV and FMV for asset-based lending and equipment loans, built to the standard credit officers and examiners expect.
Which value applies
The lender chooses the premise. We defend it.
The right number depends on what the credit decision rests on. For collateral coverage, lenders look to Orderly Liquidation Value (OLV), the value of the equipment in a private sale over a reasonable selling period, and to Net Orderly Liquidation Value (NOLV), that same figure after the costs of sale come out. Where the loan references the market, the file carries Fair Market Value (FMV), the price a willing buyer and seller would reach with no compulsion to act.
We determine and support each premise under USPAP, and we state our assumptions plainly so the credit file holds up in review. The full premise glossary lives on our process page.
- Orderly Liquidation Value (OLV): the value realized in a private sale over a reasonable selling period, the common basis for collateral coverage
- Net Orderly Liquidation Value (NOLV): OLV after the costs of sale, removal and disposition, the number a workout team can lend against
- Fair Market Value (FMV): the price a willing buyer and seller reach with no compulsion to act, used where the loan references market value
- One premise or several: a single report can carry OLV, NOLV and FMV side by side when the credit memo calls for more than one view
- Stated and supported: every value ties to a defined premise, a dated effective opinion, and the approaches that produced it
Related work
Where a collateral file leads next.
A lending appraisal rarely stands alone. It sits next to the SBA file on one side and the recovery analysis on the other, and it draws on the asset knowledge in each specialty. Start with the situation, and we map it to the premise.
Who orders it
The desk that has to defend the credit.
Commercial lenders and credit officers order a collateral appraisal to underwrite an equipment loan. Asset-based lending (ABL) groups order one to set advance rates against a borrowing base. Loan-review and workout teams order one to re-measure exposure on a watch-list credit. Bank examiners read the same file to test whether the value was supported. Every one of them is looking for a number that holds when it is questioned.
What you get
One file that reads the way a lender reads.
You receive a complete report, not a printout: a written narrative of scope and methodology, an itemized appendix valuing each asset, and photographs from inspection. Independent and certified, with senior review before it leaves.
- Cost, market and income approaches applied by a certified appraiser, not a database
- OLV, NOLV and FMV carried in one file when the credit memo calls for it
- Independent senior review on every report
- Lender-fluent: Jesse Lukes came up inside the bank at BMO, originating loans and reviewing collateral, so the file reads the way a lender reads it
Common questions
Answers, up front.
Do I need an appraisal for an equipment loan?
In most cases, yes. When equipment secures a loan, the lender needs an independent opinion of value to set the advance rate and document the credit. A self-reported figure or a dealer invoice does not establish current collateral value. A USPAP-compliant appraisal gives the credit file a supported number that examiners and reviewers will accept.
What is the difference between OLV and NOLV?
Orderly Liquidation Value (OLV) is the value realized when equipment is sold in a private sale over a reasonable selling period. Net Orderly Liquidation Value (NOLV) is that same figure after the costs of sale, removal and disposition are subtracted. Lenders lean on NOLV because it reflects what the collateral would actually return after the expense of converting it to cash.
Will my bank accept this appraisal?
Yes. Reports are USPAP-compliant, prepared by a NEBB-certified Machinery & Equipment Appraiser (CMEA), and built to withstand lender, SBA, IRS, audit and legal review. The scope, premise and approaches are stated in full, so a credit officer or examiner can trace how the value was reached.
What drives collateral value?
Age, condition, maker and model, installed configuration, and the depth of the resale market for that class of equipment. We inspect the assets, document them with photographs, and apply the cost, market and income approaches to support the value. We do not quote a number before inspection, because collateral value rests on the actual equipment, not a description of it.
Can one report cover OLV, NOLV and FMV together?
Yes. When a credit memo references more than one premise, we carry OLV, NOLV and Fair Market Value (FMV) side by side in a single file, each tied to a defined premise and a dated effective opinion. That gives the lender one consistent set of assumptions to underwrite against.