Equipment Lending
How Equipment Gets Valued for a Loan
The iron is the application. This guide covers how that works for one corner of equipment finance.
Equipment Lending
The short version, then the substance.
Key Takeaways
- The three values
- What moves the number
- Helping your own appraisal
The three values. Retail is what a dealer asks. Fair market is what a willing buyer pays. Orderly liquidation is what it brings if it must sell quickly. Lenders think in the last two, because those are the values that survive bad scenarios.
What moves the number. Hours or mileage, condition, maintenance records, attachments, and how liquid the resale market is. A common machine in good order with records is worth more as collateral than a rare one in great shape, because liquidity is value.
Helping your own appraisal. Photos from every angle, the hour meter, the service file, and serial numbers up front. A complete equipment package can shave days off underwriting and points off pricing, because clarity is the cheapest credit enhancement there is.
The South Texas angle. Averlend underwrites this every week in Corpus Christi and across Nueces County. If you are working a deal in downtown or anywhere else in the metro, the theory above comes with a local desk attached: see our Corpus Christi lending page or send the deal directly.
Questions
Quick answers from the Averlend desk.
The Averlend Promise
Reading is free. So is a deal analysis.
Send the collateral, the numbers, and the exit. An Averlend rep will reach out ASAP, same business day.