An appraisal of your borrower’s collateral can be invaluable
Abstract: It’s important for lenders to take a hard look at the current market value of a borrower’s assets periodically. One way to do so is to obtain a formal asset appraisal. This article explains the most common valuation techniques and how appraisers determine the appropriate standard of value. The article notes that an appraiser also can help a lender understand how much cash a borrower is likely to receive under various liquidation scenarios and help support decisions to reorganize or liquidate.