SBA Certified Lenders – Find An Equipment Appraiser Using The Trust Factor
As an SBA Certified Lender, you meet with a lot of small business owners and entrepreneurs who want to start or grow a business. They have a solid business plan, their financials are in order, they have great character, a stellar team, and a proven track record in managing the type of business they’re involved with. If you want to be considered as a leading SBA lenders, then this article is for you.
The goal of this article is to help you identify the most important characteristics of an expert lender and give you insights on how to find a trusted certified equipment appraiser.
In this article, we’ll review 3 important ideas:
- What makes a great SBA Certified Lender
- Why long-term relationships are vital in the lending process
- How to use the Trust Factor in finding a Certified Equipment Appraiser
What makes a great SBA Certified Lender
Working for a bank, credit union, savings and loan company, or being another type of specialized lender gives you an amazing opportunity to participate with the SBA in providing small business loans to borrowers you typically wouldn’t lend to without an SBA guaranty.
You’ve become a trusted source for small business owners and entrepreneurs and you’ve met the requirements that allow you to carry the title “SBA-Certified Lender”.
- You’ve continually evaluated, processed, closed, disbursed, serviced, and liquidated small business loans.
- You are open to the public.
- You show continuing good character and reputation, and maintain ethical requirements set by federal regulations
- You show success to the supervising state or federal regulatory authority.
To your institution, the SBA lending program is a priority. You provide an extremely important service to your company and the small business communities you help.
Likely in you case, the bank or financing institution you work for considers their SBA lending operations just as important as their conventional lending operations. They put their most talented people in the SBA loan department. Your team’s understanding of the SBA lending processes and procedures is impeccable. You may even have a team dedicated completely to SBA loans, which has given you a proven, successful lending process.
Why Long-term Relationships Are Vital In The Lending Process
Successful lenders work on building long-term relationships with their borrowers that go beyond the approval of an SBA loan.
The most successful banks and nonbank lenders focus on helping their customers throughout the lifetime of their business. As a result, lenders learn more about the financial and structural health of a borrowers’ business and often profit from offering an array of financial solutions. In turn, borrowers gain an ongoing source of expert assistance as well as credit.
As lenders find their small business portfolios gaining profits, they’re likely to meet the SBA objective of providing more loans to those in the small business community who are unable to gain credit elsewhere on reasonable terms and conditions that serve the business best.
How The Credit Score Method Can Hurt
Another trait of successful lenders is their reliance on evaluating an individual borrower’s situation more than on automatic screening methods like credit scores.
Credit scoring, which uses computers to measure and predict the creditworthiness of potential borrowers, does have its’ place in improving the efficiency of the loan origination process.
It can help lenders identify strong loan candidates on both ends of the lending procedure. It’s a great indicator for establishing who clearly qualifies for a loan and who doesn’t.
But what about those candidates who are on the borderline? And what about the ones whose credit scores come in below the threshold. A borrower’s credit score doesn’t indicate how the owner or entrepreneur will perform in their business setting, nor does it gauge how well the loan will perform.
Using only an automated computer system to determine who gets a loan and who is denied could result in your institution losing a successful, lifelong customer who provides tremendous value.
Also, credit scores could drive away good borrowers who didn’t show the “right” amount of profiting years, or the “minimum” amount of years in a given area. Credit scores certainly don’t take into account the possible successes of future prospects.
Partnering With An Appraiser Using The Trust Factor
This is where a trusted, Certified Equipment Appraiser can be your greatest ally in identifying a strong candidate, vetting the potential borrower or seller’s equipment, structures, and systems before your team makes the final loan decision.
At Auction Masters, we call this The Trust Factor. Like the long-term relationships you build with your borrowers, you want to have a certified business equipment appraiser who you can trust now and in the years to come.
You want to partner with an appraiser who displays an impeccable process, is known for a valued reputation in the related industries, and shows a successful track record in working with small businesses. You want an appraiser who is going to do the right thing in the right way, every time.
The Trust Factor is determined by a set of 4 questions you should consider when looking for a top-notch appraiser to help you create valuations for small businesses.
- Does the appraiser have the proper Business Appraisal Credentials?
Yes, this is an obvious question. It’s also an important part of an appraiser’s foundation, showing their competency and ability to complete valuations in a detailed, structured manner that is dictated by a standard set of guidelines.
- Do they know their metrics and are their numbers well-supported in the proper format using reliable transaction databases?
The best business equipment appraisers understand the correct way to generate comparables and show a solid Standard of Value. You can count on them to use the best practices available, with the highest standards, for establishing their valuations.
- Are they able to explain the “why” behind their valuations and not just the “what”?
This is where we really start to separate the cream from the crop in terms of business equipment appraisers. The best appraisers are able to take all of the comprehensive data, comparables, Standard of Value, FMV, including the numerous other variables, and show why they are valuing a piece of equipment at a certain price.
- Do they exhibit the character of trust and honesty?
The most important of our 4 questions that must be answered in a decisive “yes”. If any of our other 3 questions were answered “no”, then you may want to look further into what the issue is and decide if you can correct the issue. If the trust question is answered no, then you should continue your search for your appraiser.
At Auction Masters, we make sure every answer to our Trust Factor questions is a resounding “yes”. We set the highest standards for our appraisal processes and hold ourselves accountable to providing the most accurate valuations possible. If you’re looking for a long-term business equipment appraiser that you can count to do the right thing in the right way, everytime. Give Auction Masters a call today.