Asset-based lending
Revolving facilities secured by equipment, lenders set advance rates against OLV/NOLV.
Equipment appraisals for loan collateral.
When machinery & equipment backs a loan, your lender needs a defensible value on the right premise, orderly liquidation (OLV), net OLV (NOLV) or fair market value (FMV). Lukes Werks delivers USPAP-compliant collateral appraisals, fast.
The short answer
What value does a lender need for equipment collateral?
Most asset-based lenders advance against orderly liquidation value (OLV) or net orderly liquidation value (NOLV), what the equipment would bring in a reasonable, well-managed sale, net of selling costs, because that's their recovery if the loan defaults. SBA and conventional term loans often rely on fair market value (FMV). We determine the premise your lender requires, value the assets item by item under USPAP, and document it so it holds up.
The right premise matters to your borrowing base: a defensible OLV opinion can support a stronger advance than a book-value estimate. We never quote a value before inspection.
When you need one
Common lending scenarios.
Equipment & term loans
New financing or refinancing against owned machinery, rolling stock and shop assets.
SBA 7(a) & 504
Independent, USPAP-compliant equipment appraisals that meet SBA collateral requirements.
How the engagement works
From asset list to lender-ready report.
Scope & assets
You send the asset list and photos; we confirm the premise your lender needs and whether it's desktop or on-site.
Inspect & analyze
Cost, market and income approaches applied item by item by a certified appraiser.
Senior review
Assumptions, data and methodology confirmed before release.
Defensible report
Narrative, itemized appendix and photographs, named to your lender as intended user.
Common questions
Lending appraisals, answered.
Do I need an appraisal for an equipment loan?
Most lenders require an independent, USPAP-compliant equipment appraisal before advancing against machinery, especially for asset-based and SBA loans. It establishes the collateral value they lend against.
What is the difference between OLV and NOLV?
Orderly Liquidation Value (OLV) is the gross amount equipment would bring in a reasonable, well-managed sale. Net OLV (NOLV) subtracts the costs of that sale. Lenders often advance against NOLV because it reflects their true net recovery.
Will the report meet my lender's or the SBA's requirements?
Yes. Our reports are USPAP-compliant, prepared by a NEBB-certified Machinery & Equipment Appraiser (CMEA), name your lender as the intended user, and include an itemized appendix and photographs.
How current must the appraisal be?
Lenders typically want a recent effective date. We date the report to inspection and can advise on timing for your facility.
Related
Often paired with expansion & refinance, restructuring, and our motorsports specialty. See how we determine value.
Ready when you are
Get a lender-ready number.
Start your request online, upload photos for a desktop appraisal, or tell us how many sites your assets sit on for an on-site visit.