07 Apr Faster Equipment Appraisals: 4 Tips for Expedited Appraisals
When you need an equipment appraisal, you want it completed as quickly and painlessly as possible, without compromising quality. Equipment appraisal timing depends on a number of factors for lenders, but most importantly, working with experienced professionals that have perfected a streamlined process can save you a significant amount of time.
However, it is crucial to know that you, as the lender, can play a key role in how fast your equipment appraisals are wrapped up. Read on to learn what you can do to keep the process moving and set yourself up for speedy results!
1. Start early: Even though it can be difficult to collect documentation such as equipment lists and records, if you do have a shorter-than-ideal deadline, it’s imperative to ask your clients to start collecting details and documents as soon as possible, and to share that information upfront with your equipment appraiser. Consider keeping a template on hand of the list of items that you’ll need, and once you know an appraisal will be taking place, send the list of items to your client. (Learn more about the impact of machinery & equipment appraisal data and the effect on value at https://reliantvalue.com/remaining-useful-life/)
During the appraisal process, the appraiser will ask about:
- Make and model of the equipment
- Age of equipment
- Serial number
- Maintenance and repair records
- Any special features or upgrades
2. Determine the reason for an appraisal: Laying out the reasons for getting an appraisal helps to facilitate the process, ensure that good communication is practiced with all necessary parties, and that the proper documentation is requested and provided in a timely fashion.
Reasons for an appraisal might include:
- SBA 7(a) or 504 Financing
- USDA Financing
- Default or Liquidation
- Buy/Sell Agreements
- Partnership Dissolutions
3. Know whether or not you need a site visit: Will your bank or government regulations require a site visit equipment appraisal? If you do need a site visit (or your appraiser recommends one), you will want to factor the site visit into your timeline. (Learn more about the difference between an on-site and desktop equipment appraisal at https://reliantvalue.com/types-of-equipment-appraisals/).
4. Work with firms “in the know”: Working with reputable appraisal firms who are familiar with your lending process will likely yield faster results. Additionally, using a firm with a national presence will decrease the time needed to search for multiple, local firms that are not familiar with you or your processes.
Whether you are making a new loan, or going through the unfortunate liquidation process, it is imperative that you, as the lender, have a detailed list of the machinery and equipment assets that need to be appraised, as well as an appraisal company you can rely on to assist you through the process.
Feel free to contact our machinery & equipment appraisal team with any specific questions you may have about the site visit and desktop appraisals we provide.