How Do You Know The Value Of The Customer’s Equipment Or That The Equipment Really Exists?
Watch Out For These 3 Deadly Mistakes Of Determining Equipment Values...
Deadly Mistake #1: Relying on the word of an “uncertified” person to deliver a value on equipment.
Unless an Auctioneer or equipment dealer is Certified in equipment appraisal, they may have a hidden agenda. If the appraisal report you obtain is not USPAP compliant it is not a “qualified” appraisal prepared by a “qualified” appraiser pursuant to the Council of Foundations, IRS, or others. A Certified Machinery and Equipment Appraiser(CMEA) who is a member of NEBB Institute, meets and exceeds the experience and training requirements of many governing authorities. Beware if the individual does not have a certification. You will only be opening yourself up to increased costs, liability, risk, and an unsubstantiated equipment appraisal.
Deadly Mistake #2: Guessing at equipment values.
Guessing is filled with liability and risk. The loan file will not contain the substantiation needed to support a loan decision.
Deadly Mistake #3: Relying on the depreciation schedule.
The depreciation schedule is only important to the business owner, CPA, and the IRS. The depreciation schedule will not provide the fair market value, orderly liquidation or forced liquidation value. Once again, this method is filled with liability and risk.
Every day Bankers, Lessors and Lenders Come Face-To-Face With Decisions That Involve Arriving At A Realistic, Independent Value For Machinery Or Equipment.
If you can answer "Yes" to any of these situations, you are in need of an Independent Certified Machinery And Equipment Appraisal By A Qualified Appraiser Preparing A Qualified Appraisal.
- Is there a chance that your machinery or equipment loans are under-collateralized?
- Are you becoming more "asset minded" due to cash flow and economic times?
- Do you need to know the value of machinery or equipment to secure existing loans?
- Repossession inevitable?
- How much will you bring per item?
- Does the equipment "really" exist?
- Do you have an experienced professional who has a national market of buyers that can turn a repossessed item into cash? Is it time to liquidate?
At last ...
... Get The Expertise Of A Certified Machinery And Equipment Appraiser Who Upholds The Regulations, Ethics, And Appraisal Procedures Of The Uniform Standards Of Professional Appraisal Practice (USPAP).
A Certified Machinery And Equipment Appraiser (CMEA) delivers an independent comprehensive Certified Machinery And Equipment Appraisal Report that is irrefutable, defensible and withstands scrutiny because it is based on comparables and market research. Gone are the days when a true realistic market value cannot be obtained because of a lack of research, experience and certification.
A CMEA delivered Report eliminates your risk and liability associated with the appraisal of machinery and equipment. In addition, a CMEA has experience in liquidation of machinery or equipment.