One of the services HeavyWorth provides is trusted, third-party equipment valuations for lenders who might not have the ability to do proper equipment valuations for themselves. We asked Bill Albaugh why it is so important that lenders have current and accurate valuations of the equipment backing the loans for ag or construction equipment.
One of the things when evaluating used equipment that should be very important to an ag lender — you know, an ag finance company, bank, credit union — anybody who loans money to a producer, or even on the construction side to a construction company, is the valuation of the used equipment. You want to make sure that your asset-to-value ratio is the right way. In other words, that the amount of money you've got loaned out using that asset — that the value of the asset offsets it, in other words. And what's very, very important in both the agricultural and construction equipment industries is making sure that you're probably secured. So, in the case of, unfortunately, default that you aren't taking huge losses because you've overvalued the pieces of equipment that you've got collateralized. So that's why it's extremely important that you have the right values assigned to those pieces of equipment.
For lending institutions who don't have equipment experts on staff, or for lenders who don't have enough staff to keep up with the amount of collateral or the fluctuations in value imposed by recent uncertainties in the markets, HeavyWorth can provide valuation services that range from simple cataloging to complete, turn-key valuations of entire fleets. Learn more at https://heavyworth.com/services