Lenders Turn to Present Value LLC for Pre-Loan Due Diligence
Lenders got a wake-up call this year. When times were good, trust and a cursory background check were often enough to secure a deal between a lender and a client, but after getting hurt this year by clients defaulting on their loans, lenders are working hard to make sure that any risks they take are calculated ones. “Lenders are still making money available,” said Chris Kinzie, co-founder of the appraisal firm Present Value LLC, “but they are more careful to do their due diligence first.”
As part of the pre-loan process, lenders need to ensure that their investment is sound and that they can recoup their money should a client default on a loan. This is where a certified appraisal becomes important. “Hiring an appraiser can reduce a lender’s liability,” said Chris Spinelli, Present Value co-founder. “We’ve heard horror stories about lenders who did not do appropriate research, which resulted in liquidation and huge losses for the lender.”
An appraiser helps a lender make better, more informed lending decisions by evaluating the equipment a loan recipient wants to buy and providing the lender with an accurate appraisal. Of the many types of equipment values an appraiser can provide, the ones that are most important in a default situation, and currently the most requested, are the fair market, the forced liquidation, and the orderly liquidation values. With a certified appraisal in hand, the lender can make an educated loan decision based, in part, on these three values.
Present Value prides itself on its turnkey service, and is happy to act as a resource for its clients as they cope with past mistakes and look toward improving their processes. “Lenders turn to us because we know their business,” said Kinzie. “Our experience and our understanding of their needs allow us to act as consultants. And we help them achieve great results.”
Read the full text of this press release here.
By: Present Value