Is your company on the move? It's not unusual for businesses today to have a fleet of vehicles available for getting technicians to and from customer locations, making deliveries and improving brand recognition to the general public. But did you know that you can use that very functional part of your business to optimize your company's overall operations? Here's a quick look at how using a fleet transportation vehicle appraisal can help you grow your business.

Roll On! Using Fleet Transportation Vehicle Appraisal to Optimize Operations

Businesses have vehicle fleets to meet a number of different needs. They're used to create a unified brand image for their service vehicles while ensuring that everything their technicians need to get the job done is installed and ready to go. They're used to build brand image when luxury vehicles are driven by upper management or used to pick up other business executives at the airport prior to a big meeting. They're used to build brand recognition by the general public when they're driven down the road during everyday operations. They provide verification of intent when your delivery truck pulls up to a home or job site, setting people's mind at ease.

But over time, these vehicles wear and age. This can make it difficult to determine what their value should be on the accounting books. It's easy to simply depreciate vehicle value for tax purposes on the accounting books, but what about when you're still getting value out of that car, truck or van years after it's been fully depreciated? How do you use that value to your company's position in the market and capacity for growth?

When you're trying to secure financing to expand your operation, valuing all of your assets is important to presenting a realistic picture of your company's finances, not just the value of the assets that still have value in tax depreciation tables. Your business' vehicle fleet can be a good source of unrecorded value for your business, as it may have vehicles that have been completely depreciated but do not yet require replacement.

Knowing the value of these hidden assets allows you to leverage them to the best of your ability, whether applying for a loan or trading in a vehicle for a newer model. Unfortunately, if you choose to have the dealership you're working with determine the value, they may underestimate or overestimate the value, depending on their purposes and which option they feel will best benefit them and help close the deal. A van that could be used for years can be declared as only being fit for the junkyard, or a sedan that's truly worn out may be given a higher value to help make a sale.

By having a fleet transportation vehicle appraisal performed, you can use that information to decide when it's time to replace aging assets and when you should hang on to those assets a little longer before investing in new vehicles. However, trying to make this decision without having the level of information available in an appraisal report from an accredited equipment appraiser can make that decision difficult at best. Make sure that you're working with a properly accredited appraisal specialist to ensure that you're getting an independent opinion on the value of your fleet vehicles.

Despite a slight downturn in the early part of this year, construction spending is forecasted to begin climbing again. Is your business positioned to expand operations by buying new equipment, adding new crews or purchasing new software? Securing capital to deal with issues such as this often means getting a business loan. But how do you accurately estimate the value of your business assets to secure that loan or sell in favor of newer or better machinery? A construction contracting asset appraisal can help. Here's how:

Growing with the Building Increase: Construction Contracting Asset Appraisal

Working in construction demands a certain amount of market savvy to understand the cycles the industry moves in. Preparing for those changes often means having a good grasp of the value of your construction equipment assets. Why? As the equipment ages or is used on the job site, it begins to lose value. At the same time, newer, larger projects demand better equipment. It's difficult to go into the negotiating process if you don't know what your current equipment is worth and how it can be used to offset the expense of the replacement equipment.

Expanding your business means that you'll need capital, whether it's to take on new crew, buy new machinery or explore new opportunities. But where is that capital going to come from? Though you can get a business loan, if your business' credit history has had any shaky points, you may not be able to secure the best available rates. This is one area where being able to use the capital tied up in asset value can be beneficial to your company. 

A financial institution that may not be willing to issue a loan or that is charging a higher interest rate may be willing to negotiate if they feel that their interests are being protected. If you can offer substantial collateral on the loan, such as the value of your equipment assets, you're able to bring something more to the table that allows them to make a better offer.

But how do you prove exactly what your machinery is worth so that the bank feels comfortable in negotiating its loan terms with you? You could have an equipment retailer estimate the value of the machinery, but their estimate is going to be based on what their current interests are, so they may not provide you with an accurate assessment of value.

Basing your equipment values on what similar machinery is being sold for in a magazine or online will only provide you with a rough estimate and may not take the condition of the equipment into account. Working with a certified equipment appraiser is the only way to provide your financial institution with equipment values that are based on tested methodologies that will hold up to strong scrutiny in a range of situations.

By having a construction contracting asset appraisal performed on your company's essential equipment, you can use idle equipment as collateral for a loan, make smart decisions about what equipment to keep and what equipment to sell and replace or have documentation estimating the value of your machinery for an insurance claim. Whatever you decide, make sure you're working with a certified equipment appraiser to ensure that you're getting an accurate value for your construction and contracting equipment.

When it comes to machinery valuation, there are a number of aspects that set aircraft appraisal apart from other types of equipment appraisal. These differences can make a serious difference in how your aircraft equipment is valued, so it's important to have a decent grasp of what happens during the process. This allows you to use the appraisal to ensure that you can leverage the value of your equipment for a wide range of purposes, such as expansion, upgrades and sales. Here's a quick look at what happens during the appraisal process to help you know what to expect.

Exactly what happens during an aircraft appraisal?

To start, as with many pieces of equipment, the appraiser will look at the number of hours the aircraft has been used. This provides them with a baseline of information of what to expect as far as wear and tear on the engines, the time until the next overhaul and similar aspects. However, unlike other equipment, they'll also look at the number of takeoffs and landings that the aircraft has undertaken. Why? This involves the wear and tear on the aircraft's structure, as this portion of the operation cycle can take a toll on the structure itself. Generally speaking, when comparing two aircraft that are similar in hours, the aircraft that has had a recent engine overhaul and fewer takeoffs and landings will have a greater value than one that is approaching an engine overhaul and numerous takeoffs and landings.

The appraiser will also look at how well the aircraft has been maintained over time and the demand for both aircraft in general and that model in particular in the market. If demand for jets are up and you have a turboprop, that may decrease the value of your aircraft, but if it's a good model that has a constant demand, it may mitigate the depression in the market, allowing you to realize a better asking price compared to similar turboprops of different models. This allows you to maximize your equipment value without having to follow every minor shift in the market, making it easier for you to focus on doing your job.

An appraiser considers a wide range of aspects of your aircraft that you may not have even considered. Has your aircraft had a custom paint job or interior design to match your brand or style that will need to be redone to suit another client? Does it have features, such as a medical bay, which works well for your company's use but will have to be removed or renovated for a commuter company? What about the condition of the landing gear, cockpit or fuselage? These different features of your aircraft may benefit your company's marketing, purpose and bottom line, but may not benefit a future owner, aspects that must be taken into consideration by an equipment appraisal specialist.

By having a good grasp of what happens generally during an aircraft appraisal, you'll be able to leverage the value of your equipment for business growth, upgrades to your aircraft or to make an effective sale. If you don't understand the process, you'll have a harder time understanding whether the appraiser you're working with is providing you with the information you need. However, the easiest way to ensure you'll get the results you need is by working with a certified equipment appraisal specialist.

When your business is on the water, knowing the value of your assets is a vital part of understanding your company's bottom line. But understanding the process of marine vessel valuation can seem like a much more complicated process. However, when you're working with an experienced certified equipment appraiser, the process is much more seamless. Here's a quick look into how the valuation of marine vessels works, whether you're looking at barges, ships, tow boats or any other type of marine vessel.

What exactly is involved in Marine Vessel Valuation?

A few decades ago, the value of a marine vessel was simple to determine - it was what you could get for it on the open market. But today's connected world has opened up new options, and with those options have come new ways to calculate the overall value of your marine vessels in a wide range of specific circumstances. This allows you a greater level of flexibility in determining what your marine vessel is worth based on your needs.

To start, a certified equipment appraiser will take a solid look at your marine vessel, in terms of the manufacturer, model and condition. If it is in good shape, it will be expected to last much longer than a similar vessel that has been abused or poorly maintained, and that superior condition is reflected in a higher overall value. The manufacturer's reputation and the performance and popularity of that specific model will also come into play, with better reputation, performance and popularity driving a higher overall value.

The next aspect of the vessel's value that will fall under consideration is the reason for valuing the equipment. If the vessel must be sold quickly to pay for other business debts, it's not unexpected that the vessel will sell for a lower value than if the vessel is sold to the right buyer at the right time or held onto while being used as collateral for a business loan. There are some circumstances where the vessel's value must be determined in a specific way, typically when it's being used as proof of value in a court of law.

The third aspect of determining the value of marine vessels is the market conditions. As an example, when trade is booming, cargo ships hold a much higher value than when the economy is poor and the vessels are not as strongly in demand for trade. However, just because trade is poor in one part of the world where you typically do business doesn't mean that you need to settle for a low price. A good equipment appraiser will take these factors into account and determine if there are other areas where your marine vessels would command a higher value, allowing you to capitalize on good trade in other areas.

By having a better understanding of how marine vessel valuation works, you'll have a better idea of what to expect when you're ready to have your marine vessel assets appraised. This allows you to ensure that your business books are accurate and up to date, so that you can leverage the value of those assets to grow your business into a promising new future. However, make sure that you're working with a certified equipment appraiser to ensure that the figures and calculations are accurate and can hold up well in a wide range of situations well into the future.

When you're dealing with a local tax agency over the value of your property, it can be a frustrating experience. Fortunately, there's one tool you can bring to bear that will prove the worth of your equipment assets beyond any other: equipment valuation. By having a property tax appeals appraisal performed on your machinery, you'll have an independent source verifying the value of your equipment. Here's a look at how the process works and how it backs up the value of your equipment.

How a Property Tax Appeals Appraisal Helps You Win!

Equipment values can be estimated in several different ways, and tax assessors may or may not be using an appropriate method to determine your tax liability on that equipment. In many cases, tax assessors are dealing with a very wide range of property when they're trying to determine value. Homes, boats, cars, business structures, machinery, livestock: these are all property that a tax assessor must attempt to determine value on. They don't specialize in any one area, so it can be very difficult to accurately determine value with the sheer variety of assets they must assess.

An equipment appraiser, on the other hand, tends to specialize in specific types of equipment, and only equipment. This puts them in a much better position to determine the value of your machinery. They have a much better grasp of the nuances between types of injection molding machinery or metal presses, as an example. This means that they know that the machine that you're using in your business is worth more or less than the one being used at a similar facility a half mile away. 

They're also well practiced in calculating value. When a certified appraiser goes through the certification process, they're being taught a range of different methods to calculate value. This education ensures that they know which methodology to use in which situation, so your equipment is being properly valued when they work through the process. The final calculation provides a solid basis for value.

But why are these methodologies so much better than the ones your tax assessor uses? Because valuation is the appraiser's business, they use methodologies that have already been tested in a wide range of real-world situations. In financial circles, insurance claims, court cases and tax appeals, these methodologies have been put to the test time and time again and have come out ahead. Because they've been through this process, equipment appraisals that are performed using these methodologies are viewed in a favorable light in these circles. This ensures that your appraisal will help you prove value and win your appeal quickly.

By having a property tax appeals appraisal performed on your equipment, you can quickly prove the exact value of your equipment without having to spend a lot of time arguing with the tax board. However, these benefits only apply if you're working with a certified equipment appraiser, because the methodologies, experience and education mentioned above are taught during their certification process. If you're not sure whether the appraiser you're considering working with is certified or not, take a few minutes to ask about what their professional certifications and qualifications are to ensure you're hiring the right person for the job.