For many businesses, Machinery and Equipment represent a significant share of a business’ value and there are times when those assets will need to be appraised. Like a business valuation, there are common reasons for when a Machinery & Equipment Appraisal will be needed. The most common reason is asset-based lending when the Machinery & Equipment is being used as collateral for securing a bank loan.
Specifically, for SBA Lending, the SBA SOP’s are clear in stating that when determining the value of a company’s fixed assets, the lender must use the Book Value of Assets unless there is an Independent M&E Appraisal.
Whether for conventional or SBA lending, GCF uses in-house accredited appraisers for all engagements, including engagements that require an on-site inspection when a physical inspection is needed. Our site inspection reports will stand up to any audit. All GCF Machinery & Equipment Reports are USPAP & SBA Compliant and include Fair Market Value, Orderly Liquidation Value, and Forced Liquidation Value.
GCF offers two types of Machinery & Equipment Reports:
Restricted Desktop Appraisal
A Certified Machinery & Equipment Appraiser has not made a site visit and instead conducts a phone interview to review and discuss depreciation schedules and/or a fixed asset list with year, make, model, serial number and performance maintenance schedule. The report will provide a summary of the equipment appraised ensuring compliance with USPAP reporting standards. The Restricted Desktop Appraisal Report is intended for a single user.
Restricted Summary Appraisal
This appraisal includes a site visit and is used upon lender request or when a lender is seeking to collateralize assets as part of a loan. Our Certified Machinery & Equipment Appraiser (CMEA) visits the site(s) where the machinery/equipment is located, completes a physical inspection, provides a summary of the equipment valued and ensures compliance with USPAP reporting standards. The Restricted Summary Appraisal Report is also intended for a single user.