USING APPRAISALS TO GET THE DEAL BOOKED

The current marketplace seems to dictate that machinery and equipment appraisals are not mandatory for many new deals. This same thought process even extends to inventory valuations. Lenders on the marketing side readily acknowledge pressure to bring in new accounts. The competition often dictates w...

Full description

Saved in:
Bibliographic Details
Published in:The Secured Lender 2006-05, Vol.62 (3), p.62
Main Author: O'Connell, J Brian
Format: Article
Language:English
Subjects:
Appraisals
Appraisers
Bids
Collateral
Competition
Cost control
Due diligence
Financial institutions
Lenders
Machinery
Valuation
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The current marketplace seems to dictate that machinery and equipment appraisals are not mandatory for many new deals. This same thought process even extends to inventory valuations. Lenders on the marketing side readily acknowledge pressure to bring in new accounts. The competition often dictates what the market will bear relative to due diligence. The lender needs to determine if a "full" appraisal is necessary. Working with the established approved appraisers and diligently managing the list help keep costs in check. Many lenders hold down costs by establishing a bidding process. Competition is forcing lenders to get more aggressive with their advance rates. Many financial institutions have their own field exam staff. One way to drive down the cost of establishing risk associated with inventory revolvers is to expand the scope of the field exam. To remain competitive in the current market, lenders must find the proper level of due diligence that makes sense for their risk appetite.
ISSN:0888-255X