Green Trust Cash Using Machinery And Equipment As Collateral To Secure A Loan

As a Certified Machinery and Equipment Appraiser, I often work with bank loan officers when they have a business owner looking to secure a green trust cash payday loans online lenders only. In order to minimize the risks of extending credit, they will call for a certified appraisal of the business owner's collateral. In order to ensure that the particular collateral provides the proper security, the lender will consider the type of collateral, tangible property such as machinery or equipment inventory, and match it to the green trust cash need money no credit check being made.

Here are some tips to help business owners prepare for a machinery/equipment appraisal, which ultimately will help expedite the oftentimes, lengthy green trust cash extended payday loans bad credit process.

Typically the appraiser will first ask for a list of the owner's equipment assets. A current depreciation schedule will work initially. Ideally, an Excel spreadsheet customary to bookkeeping and maintenance record keeping within a company would be the best way to organize the information. Spreadsheet format should include: Machinery Description, Manufacturer/Make, Model, Serial Number and Age/Date of purchase and Cost.

The appraiser will look at the list to determine which pieces need to be individually certified (typically those items with a remaining book value of $2500 or more). Additional smaller, support or peripheral items can be included in the appraisal, but will most often be grouped or bulk-categorized and valued using current industry depreciation standards and historical metrics.

Once the appraiser has submitted a proposal and is engaged to conduct the appraisal, a time is arranged with the property owner to view the equipment. The appraiser may arrange a time to meet after normal business hours or possibly a weekend day so that there will be minimal disruption to normal business operations.

At the site, data collection proceeds. It is recommended that a person familiar with the equipment is present during the visit, as the appraiser will need an accurate accounting of the working condition and maintenance of the items being assessed. It is helpful to have maintenance record copies if they are available. While on-site, the appraiser will verify and examine the equipment, photograph and document the manufacturer, model, serial number and physical condition of each piece. Fifty items, depending on the size and complexity, may take 3 to 4 hours to document.

Most of the work of a certified appraiser is performed back at the office after the data has been collected. Through hours of industry research, comparable analysis, documented discussion with manufacturers and sales representatives, the valuation process takes shape and ultimately generates the determined value (Fair Market Value, Orderly or Forced Liquidation Value, etc.) of each piece.

A certified appraisal report must be executed by a qualified machinery /equipment appraiser whose professional experience is essential to being able to present an opinion of value that is substantiated and defensible. Report assignments should be confidential and composed in a manner that is independent, impartial and objective. Report quality, presentation and content that abides by USPAP standards and Federal guidelines should be the basis for any certified appraisal report.

If you are thinking about business ownership or are a business owner, these tips should help you prepare for loan financing as well as buying or selling, expansion, insurance coverage, or future strategic growth.

Author, Suzann Logan is a Certified Machinery and Equipment Appraiser and Senior Business Analyst at Best Choice Appraisers, located in Northern California. Services extend to all California regions and nationwide in desktop format. For more information, visit http://www.BestChoiceAppraisers.com