Equipment appraisals for lending and collateral.

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 value that examiners and reviewers will accept.

Net Orderly Liquidation Value, in most equipment and asset-based facilities. The advance rate is applied to the net figure rather than the gross, because the credit has to survive the cost of selling the collateral, not just the sale itself. We itemize the assets so the rate can be applied at the category level and the borrowing base recertified without a fresh engagement. For how the net figure is built, see our explainer on Net Orderly Liquidation Value.

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.

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 We do not quote a value before inspection.

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.

Asset-based lending (ABL) is a credit facility where the borrower draws against a borrowing base made up of receivables, inventory and equipment. The equipment portion of the base is typically built on Net Orderly Liquidation Value (NOLV). We itemize and value the assets so the ABL group can apply its advance rates at the category level and recertify the base without starting over.

There is no universal rule, but most credit policies call for a reappraisal at renewal, when the credit is materially modified, when the borrower's condition changes, or when an examiner flags the file. Asset-based facilities often reappraise annually. We can update a prior report or prepare a new one depending on how much has changed in the equipment and the market.

Yes. Many commercial credits and ABL facilities involve equipment spread across several sites. We coordinate inspection across locations, document each site separately in the appendix, and deliver one consolidated report so the credit file stays clean. Nationwide coverage means there is no subcontracting or handoff on remote sites.

No. An equipment appraisal values the equipment, not the business, so the inputs are the asset list, serial and model numbers, meter readings, condition and photographs. Statements, tax returns and projections are not part of developing an opinion of value on machinery. A collateral appraisal can be completed on a distressed or uncooperative credit that has stopped producing statements.

No. USPAP prohibits accepting an assignment that includes reporting a predetermined opinion or conclusion, and prohibits compensation contingent on a predetermined result. New information is different and is handled properly: equipment left off the list, an asset we were not shown, a documented overhaul, or a genuine change in the purpose of the assignment. Each of those is a revised or new assignment with its own scope and effective date, stated on the face of the report.

Common, and it is one of the things an inspection is for. Registers drift: assets get sold, scrapped, moved between sites, or replaced without the list catching up, and leased equipment often sits on it as though it were owned. We reconcile what is on the list against what is actually there, flag the differences, and value what the lender can reach. A borrowing base built on a stale register overstates collateral, which is the finding nobody wants in a review.

An appraisal is a USPAP-compliant opinion of value developed from inspection, documented methodology and market evidence, prepared by a certified appraiser. A desktop estimate is faster and cheaper but relies on descriptions and assumptions rather than verified condition and configuration. Most credit policies require the full appraisal for the initial file, though a limited-scope update may be acceptable at renewal depending on the bank's policy.

The value does not move. The structure does. A lender with a shortfall can reduce the advance to what the collateral supports, take additional assets into the package, restructure the facility or the term, ask for a guarantee, or decline the credit. What does not happen is the appraiser revising a conclusion so the credit works: USPAP prohibits accepting an assignment that reports a predetermined opinion. New information is a different matter. Equipment left off the list, an asset we were not shown, or a documented rebuild that surfaces later is a new or revised assignment with its own scope and effective date, and the report says so on its face.