An equipment appraisal is an unbiased opinion of value that is accurate, defensible, and completed by an accredited, qualified professional equipment appraiser. An equipment appraiser may use one of these three methods.

Sales comparison– in this method the appraiser determines the value of the equipment through research from the market based on similar equipment whether it be new or used. The cost method and income method are also very important when finding the perfect value. Appraisals can be very beneficial for your company. Despite the reason, your company wants to have an appraisal done and the end results, you can almost guarantee to come out with a better understanding of your equipment, and the value of your company. It is essential to realize the health of your company so that you can keep growing and flourishing. Think of an appraisal with the mindset that it is a basic checkup for your business! Most loan officers make it mandatory that you offer a type of collateral when you apply for a commercial loan. It is typically in your best interest to provide a form of collateral that has value. This will help to make sure that you receive an interest rate in your favor and repayment terms. When you have a business valuation, it will prove that you are ready to sell your business and have taken all of the correct steps to help you in the process. When equipment is appraised at a fair price it makes the process a lot smoother. When getting a commercial equipment appraiser, one thing you should not do is just think about the “now.” You should consider the transition time, operations, profit, assets, and long-term factors. When appraising, many people do not realize just how helpful equipment appraisals are to their company’s bottom line. In fact, some people even fail to see the value of equipment beyond its everyday usage. When you searching for what business to purchase, make sure you get an excellent equipment valuation or maybe even several before you sign the dotted line.