Building the value of your Used Equipment

Building the value of your Used Equipment |Infra Bazaar

Posted By:Infra Bazaar



What’s your vehicle worth? Have you ever tried to find it out? Try going to a bank to get a loan to obtain vehicle loan only to find out you don’t have enough value to secure the bank loan. In short, yes it matters.

Whether you are seeking a loan, or seeking an investor for expansion, or even just checking lines of credit to keep the finances flowing smoothly while you wait for payment. The value of your company matters. These firms will look at a number of factors while determining the value of your company, and that determination could lead to lower rates, access to more capital, or if you are looking to sell, a higher return on your years of hard work in building the business.

Tax and the consulting firm say that value is calculated through both quantitative and qualitative factors. The quantitative factors are the financial condition of the company. The qualitative factors consider things such as driver quality (do you hire good, safe drivers?), customer relationships (who are your customers and how is your relationship with them?) and management experience (is your management team made up of veteran trucking professionals or are you all teachers who decided to give trucking a go?).

Outside influences such as regulations, fuel costs and market conditions can impact the value of your company. For example, the value of used equipment in the current environment has risen, as evidenced by increasing requirement for used heavy equipment in recent years.

There are three techniques which are generally used to value used equipment.

Full Valuation

  • Including in-depth diligent procedures that would support most deliverables.

  • These Includes site inspections of select facilities and results on an individual asset basis.

Limited Valuation

One or more valuation procedures may be excluded presently in full valuation due to the following:

  • Lack of data

  • Insufficient time

  • High-level accuracy not required                                                                    

Desktop Valuation

It is a combination of procedures from a full and limited valuation offering.

  • Utilize the client furnished data as the basis for analysis.

  • May exclude any on-site due diligence primarily due to the materiality if the assets to be valued.

The process of valuing a company is, unfortunately, not as simple as it seems and turns in valuing companies. Whether you want to pay for a professional valuation, which can run tens of thousands of dollars, would depend on why you need that valuation. If you are looking to sell or to buy out a partner, you may need an unbiased professional to set a true value.

But even if you don’t go the professional route, following some simple steps can provide you a guess on what your equipment could be worth, which can help in a number of instances, including whether you can get a loan for new equipment or a line of credit, and what interest rates you might pay. These steps, even if you are unable to see it, will generally add value to the equipment. This is helpful if you are looking to take on an investor or may be considering selling.

So how can you go about raising the value of your used equipment? IBVC (Infra Bazaar valuation calculator) advises improving cash flow as a start.

WHAT WE REQUIRE..?

  • High Definition images covered from all angles including Engine, Chassis, meters and other main parts.
  • Minimum of 5 to 20 images of each equipment are required which easily describes the status and condition of the equipment for valuating.
  • Each photography should cover all the main parts which describe the condition of a vehicle.

If are you looking to sell the used equipment or take out a loan for new equipment, knowing your value is important, but in the end, it’s the value the prospective buyer or the bank sees that is most important.

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