When you plan to set up a business or expand the existing one, bank financing is the foremost concern. If the bank asks for collateral, your existing machinery or equipment seems to be the most viable solution. If you do not possess any asset to be presented as collateral, then you may be required to pay hefty interest rates. But, if you possess some machinery that you can use for this purpose, it is advisable to avail services of certified equipment appraisers. They are experienced and experts in this domain. As such, they can offer you better business valuation services that you can present to your bank. Here are some other reasons to opt for professional appraisers for your machinery before using it as collateral for a bank loan.
– It Helps To Ascertain True Value Of Equipment:
Certified equipment appraisers can offer you specialized services for valuation of your existing machineries. Banks accept this valuation agreeably because it is verified and true to the facts. Hence, you can negotiate in a better way to resettle the terms of your loan with respect to its repayment, interest rates, duration, or amount of loan.
– It Helps To Determine The Life Span Of Equipment:
Only an expert appraiser can tell you about the true life of any evaluated equipment. It largely helps to determine the duration of your loan. If your machine is estimated to have a life of 10 years, your repayment term can also be prolonged reasonably in relation to its expected operative life. This verified documentation from certified equipment appraisers can solve many of your problems.
– It Serves As The Most Trusted Collateral:
Your bank will always trust a verified appraisal report from certified business valuation service provider better than any other arbitrary document. It is legally binding and helps them to ascertain a better loan amount depending on this authentic value of your existing equipment. You can get a loan closest to the amount of valuation of equipment to be used as collateral. It also facilitates banks to fully reclaim loan amount in the event of non-payment. If you have copies of latest valuation reports at the time of such contingencies, it gives you better credibility at the lending institution.
– It Is Always Fair Priced And Timely:
When you need finance for your business, time is always at a premium for you. In this regard, professional business evaluation service companies can offer you timely reports with a fair pricing of the equipment based on its current market value.
These points prove the trustworthiness of equipment appraisals to secure a bank loan at better rates and term. But it is equally imperative to get this valuation done by a certified appraiser.