[Sachip24]

does any lender in the equipment financing space use true market value instead of forced liquidation value?

[Kevin Henry-Seacoast]

does any lender in the equipment financing space use true market value instead of forced liquidation value?

Sachip24,

Most lenders that finance equipment will use forced liquidation value.

[mcaguru]

I actually think some leasing companies are actually valuing equipment based on the middleman/sales org's pricing and strengh of signer ! So in copy machines the sales group will sell copier for 60 month payment terms at $200 a month creating a 12K Ticket.... leasing company will give $8400 to copier seller upfront and buy the note but in reality that machine is worth on the market 6K and are really UW the signer of the notes strenth vs the actual equipment value....

[Sachip24]

Sachip24,

Most lenders that finance equipment will use forced liquidation value.

Is there anything you may be able to do in your space. This is an Energy Plant. They have 24million worth of equipment but they are re-locating to another plant. The new location is obviously pre rev currently but they want to get 10mill using the equipment as collateral. The projected revenue for the plant will be 40-70million a year

[abfunders]

Just throwing a question out there - Is there any real estate that they own involved that you could leverage?

[Kevin Henry-Seacoast]

Is there anything you may be able to do in your space. This is an Energy Plant. They have 24million worth of equipment but they are re-locating to another plant. The new location is obviously pre rev currently but they want to get 10mill using the equipment as collateral. The projected revenue for the plant will be 40-70million a year

Unfortunately because the business is pre-revenue we could not.