The costs of implementing security. They are divided into two groups: one – public duties, taxes, service brokers, advertising costs, legal fees – can take up to 25% of market value, and the second – the cost of dismantling, transportation and subsequent installation and commissioning of equipment – can be up to 5-10%, in particularly severe cases – up to 25%. Depreciation at the end of the loan agreement. Obsolescence due to the decline competitiveness of the object in the market compared to similar, more sophisticated objects and changes in the market. Physical depreciation is a consequence of physical aging facility and a partial loss of his performance.
Equipment to the physical wear and tear more than 70-80% is considered illiquid and are generally not accepted by the bank as collateral. The value of obsolescence can be defined to reduce the price of similar new equipment over time, taking into account inflationary changes. Advisable to reduce the discount to the bank at the maximum rate of physical or mental deterioration. So, the real obsolescence of computer equipment up to 30% a year, and physical – 15%. In practice, the moral and physical are not summarized discounts, or taken the greatest of them, or some combination of the weighted average. Prognostic value of the equipment.
This rate of price reduction regarding the market value of equipment at the time of a possible foreclosure on collateral. The maximum period before the implementation period is considered as a loan agreement, extended for one year (ie laid negative scenario in bankruptcy, litigation, etc.). The forecast value is calculated on the basis of price trends over time in the past, the obvious trend changes in market value of property in the future, taking into account depreciation. Click Jayme Albin to learn more. Trends in market value considered obvious, when for a long time (at least% of the term for which is expected to to provide a loan) market value varies in a certain direction uniformly, without sharp fluctuations.