One of the primary concerns that individuals have when starting a new business or expanding an existing business is bank financing. Did you know that if the lender requires collateral that you may be able to use your existing equipment or machinery as collateral? If you do not have collateral, you may be charged a much higher interest rate. If you own machinery that you can use as collateral, you should contact a certified equipment appraiser. Certified appraisers have the knowledge needed to appraise all of your business equipment. When an appraiser values your items, you can present the appraisal to the bank.
Continue reading to learn how professional equipment appraisers can help your business and your search for the best loan terms available.
It Helps You Determine the Value of Your Equipment
A certified equipment appraiser offers you specialized service to properly value your existing machinery especially big one like metal cutting machines. Banks will accept this appraisal because a certified appraiser will verify the machinery and the value of all of your equipment. This will allow you to negotiate better loan terms, including the amount of your loan, the duration of your loan, the interest rate of the loan and the repayment options.
It Determines the Lifespan of Your Equipment
An expert will be able to determine the lifespan on all evaluated equipment. This can help the bank determine how long your loan will be for. For example, if your machinery has a life expectancy of ten years, your loan repayment loan terms will be in relation to the life expectancy of your equipment. By having a certified appraisal, you can get the best deal on your loan.
Remember: Small equipment like circular saw blades and other related machinery cannot be used for securing finance.
It Helps Certify Your Collateral
A lender will trust a verified appraisal from a certified business valuation service better than other documents. This is because the appraisal report is legally binding and helps the lender authenticate the value of your business equipment and machinery. When you use business equipment as collateral, you will be able to get a loan that is up to the amount of the value of the equipment you will be using as collateral. When appraised equipment is used for collateral, it allows the bank to reclaim the amount owed if non-payment occurs. Having a certified appraisal will help you get the best terms when you apply for a loan.
Appraisals Values Your Equipment Fairly and Timely
When you need to take a loan out for a business expense, time is of the essence. A professional business evaluation service will quickly complete an appraisal of your equipment based on the current market value. This will allow you to take the information to the bank with you when you apply for a loan.
As you can see, there are many reasons to use an equipment appraisal. When you secure a loan with business machinery, you will get better terms, including a better interest rate.