In today’s ever changing industrial market place it has become apparent that in order to excel in the market place, diversity is a key component in prosperity. The ability to forecast changes in market conditions and react to those changes in a positive, timely reaction is an integral element to attaining success.
The Wall Street Journal recently reported “Asset-Based Lending Grows in Popularity”. Historically, asset based lending was viewed as a last resort for companies. But, as the industrial market place has evolved, this idea has also changed as a sound business practice, not only for the lender but for the companies seeking funding for equipment upgrades, expansions and diversifying into broader markets.
Typically an asset based loan has a quicker turn around, in terms of qualifications. Lenders do not base loans solely on credit quality. Credits given via asset based loans have lower interest rates then an unsecured loan. The basic premise is that the more liquid the asset used as collateral the lower the interest rate.
As companies react to market changes, the question of asset value can be complex. Questions such as:
- What is the value of my machinery?
- What types of values are used for collateral lending purposes?
- Is the combined value of my assets greater then the operating business?
- Should I sell idle assets rather then seek collateral lending?
IAAS Worldwide is a diverse company that through its employees and partners can provide companies with the knowledge to steer a positive course in the ever changing industrial market place. Through services such as asset appraisal, IAAS Worldwide can provide values that are current, knowledgeable and informative. The comprehension of asset values affords lending institutions and companies the tools needed to make the best decisions in today’s industrial market.
In collateral lending purposes Asset Value can be viewed in three basic ways.
Fair Market Value
“Is the price that property would sell for on the open market? It is the price that would be agreed upon between a willing buyer and a willing seller, neither being required to act, and both having reasonable knowledge of the relevant facts.” (Treasure Regulations 20.2031-2(B))
“The appraiser’s professional opinion of the estimated gross amount expressed in terms of dollars which could typically be realized at a properly advertised and conducted Public Auction without reserve, held under existing sale conditions and under present economic conditions.” The Appraisal Foundation authorized by Congress as the Source of Appraisal Standards and Appraiser Qualifications.
In Place Value or “as is where is value”
The appraiser’s professional opinion of the Gross Dollar Amount to be realized in the sale of all assets between a willing buyer and a willing seller in the open market. This value assumes that the property is being sold “As is, where is” in good condition to a buyer who will maintain these assets in their entirety, in their present location as of the appraised assets. The Appraisal Foundation authorized by Congress as the Source of Appraisal Standards and Appraiser Qualifications.
IAAS Worldwide provides lending institutions, corporations and small companies knowledgeable appraising services for virtually any industrial discipline as well as an experienced on staff business broker.
If you have questions concerning your company asset values we are here to listen. Each company is different. Each situation is diverse. IAAS Worldwide is here to listen to your particular needs. Investigate all possible values for your assets. Provide you with thorough and comprehensive knowledge that you need to make the most positive decisions for your company.
IAAS Worldwide wants your business and through integrity, knowledge and the ability to understand your particular needs will gain your trust.