Glossary · Reading the business
In short
An independent valuation of specific tangible assets, like equipment or inventory, to determine their fair market value. Lenders use this to assess the collateral backing the loan.
For deals involving significant fixed assets, your lender will likely require an asset appraisal to confirm their value. This ensures the collateral is sufficient and helps determine the loan-to-value ratio. If the appraisal comes in low, it could impact the deal structure or require more equity.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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