Inventory Appraisal for Loan Collateral

Appraising Corporate Inventory for Loan Collateral

Corporate inventory is one of the most commonly pledged assets in asset-based lending, yet it requires careful, methodology-driven valuation to be useful to lenders. The standard measure lenders rely on is net orderly liquidation value, which reflects what inventory would realistically yield if sold in an organized liquidation rather than at distressed auction prices. For SBA 7(a) loans, an independent appraisal is required when the financed amount exceeds $250,000, and many conventional lenders impose similar thresholds. Our inventory appraisal practice covers finished goods, raw materials, and work-in-process across a wide range of industries, producing the documented advance-rate support that lenders need to structure a borrowing base.

We deliver these appraisals both onsite and through our online platform, depending on the nature and location of the inventory. Our appraisers are credentialed through ISA, ASA, AAA, CAGA, AMEA, and NEBB, and carry no financial interest in any transaction they evaluate. Whether you are securing a revolving credit facility or a term loan, our collateral lending appraisal services provide the independent, lender-ready documentation your deal requires.

Types of Corporate Inventory We Appraise for Loan Collateral

AppraiseItNow covers the full range of inventory categories that lenders commonly accept as collateral, including:

• Finished goods held in a company's own warehouse or distribution center
• Raw materials including metals, chemicals, textiles, lumber, and agricultural commodities
• Work-in-process inventory at various stages of manufacturing completion
• Retail merchandise including apparel, consumer electronics, and hard goods
• Wholesale and distributor stock across industrial, medical, and commercial supply chains
• Perishable and time-sensitive inventory where shelf life directly affects collateral value
• Specialty or proprietary inventory with limited secondary market demand
• Imported goods in transit or held in bonded warehouses
• Seasonal inventory with cyclical demand patterns that affect liquidation timing
• Consigned inventory analysis to identify and exclude non-owned stock from eligible collateral

How AppraiseItNow Conducts Inventory Appraisals for Lenders

Our process is structured to produce reports that meet lender, regulatory, and USPAP standards from start to finish.

• Appraisers conduct a thorough review of perpetual inventory records, SKU-level data, cost reports, and any existing field audit findings to establish a baseline before any onsite visit or remote analysis begins.
• The valuation methodology focuses on net orderly liquidation value, with analysis of eligible versus ineligible inventory categories, including obsolete stock, consigned goods, and off-site inventory lacking landlord waivers, so lenders receive a clear picture of what is actually lendable.
• Delivered reports include a narrative description of the inventory, the valuation methodology applied, supporting market data, and a final value conclusion that lenders can use directly to set advance rates and borrowing base calculations.
• All appraisers are credentialed through recognized professional organizations and operate independently of the borrower, lender, and any other party to the transaction, satisfying the independence requirements that banking regulators and SBA guidelines impose.