USPAP-COMPLIANT · ASSET-BASED LENDING
Inventory Appraisal for Asset-Based Lending
Inventory appraisal services for asset-based lending covering raw materials, work-in-process, and finished goods, prepared in accordance with USPAP. Accountable Inventory Appraisers delivers net orderly liquidation value and forced liquidation value opinions that lenders rely on to set borrowing bases and monitor collateral nationwide.
- Net orderly liquidation value (NOLV) and forced liquidation value (FLV) opinions
- Prepared in accordance with USPAP
- Scope, timing, and a fixed fee confirmed up front, expedited service available
WHY IT MATTERS
Accountable Inventory Appraisers delivers independent inventory valuations lenders use to set and monitor borrowing bases
Asset-based lenders advance funds against the value of a borrower's inventory, so the loan is only as sound as the collateral behind it. Lenders rely on an independent appraisal, rather than the borrower's book value or retail price, to establish what the inventory would actually recover in a liquidation. That figure sets the borrowing base and the advance rate the lender is willing to extend.
We prepare net orderly liquidation value (NOLV) and forced liquidation value (FLV) opinions in accordance with USPAP, using recognized methodology and current market evidence. NOLV reflects what the inventory would bring in an orderly, time-bounded sale net of the costs to sell; FLV reflects a faster, more compressed liquidation. Both give the lender a defensible, standards-compliant view of collateral value rather than an estimate.
For revolving credit facilities, lenders typically require the inventory to be re-appraised on a recurring schedule so the borrowing base stays current as stock levels and market conditions change. We deliver reports built for that monitoring, with clear methodology the lender's credit team can follow.
Value Standards
Accountable Inventory Appraisers explains fair market value, orderly liquidation value, net orderly liquidation value, and forced liquidation value
FMV
Fair market value is the price a willing buyer would pay a willing seller, with neither under pressure to act. It's the baseline standard used across most non-lending appraisal purposes, including sale, tax, and estate matters.
OLV
Orderly liquidation value is what the inventory would bring in an orderly sale conducted over a reasonable period, assuming the seller can properly expose the assets to buyers.
NOLV
Net orderly liquidation value is orderly liquidation value net of the costs to sell. It's the figure lenders most often rely on to set an asset-based borrowing base.
FLV
Forced liquidation value assumes a rapid, compressed sale, such as an auction, with limited time to attract buyers. It's typically the lowest of the four standards.
Types of Inventory
Accountable Inventory Appraisers appraises all types of inventory pledged as loan collateral, including raw materials, work-in-process, and finished goods
We value inventory across industries and stages of production, from bulk raw materials to shelf-ready finished goods.
Raw Materials & Commodities
- Bulk raw materials
- Metals and industrial commodities
- Building and construction materials
- Packaging and components
Work-in-Process & Manufacturing
- Work-in-process goods
- Manufacturing stock
- Assemblies and subassemblies
- Spare parts and components
Finished Goods & Retail Stock
- Finished consumer goods
- Retail and wholesale merchandise
- Apparel, footwear, and electronics
- Furniture and home goods
Perishable & Specialty Inventory
- Packaged food and beverages
- Perishable and dated goods
- Seasonal and promotional stock
- Overstock and discontinued inventory
Our Process
How we complete your asset-based lending inventory appraisal
- 01
Submit Your Request
Tell us about the inventory, the lending facility, and the value conclusions your lender requires.
- 02
Asset Schedule & Intake
We review your inventory schedules, perpetual records, and cost data to scope the engagement.
- 03
Count or Desktop Review
Depending on the assignment, we perform a physical inventory observation or a desktop review of your records.
- 04
Valuation Analysis
Our appraiser applies net orderly liquidation value and forced liquidation value methodology using current market evidence.
- 05
Report Delivery
We deliver a USPAP-compliant report to you and your lender, and remain available to answer questions from the credit team.
Credentials & Standards
Our inventory appraisers hold credentials with leading professional organizations
Every asset-based lending appraisal is prepared in accordance with USPAP by appraisers who hold credentials with leading organizations such as the ISA, ASA, CAGA, and AAA.
International Society of Appraisers
American Society of Appraisers
Certified Appraisers Guild of America
Appraisers Association of America
Asset-Based Lending FAQ
Common questions about inventory appraisals for asset-based lending
What do lenders look for in an inventory appraisal?
Asset-based lenders want an independent, USPAP-compliant opinion of what the inventory would recover in a liquidation, not its book or retail value. That means a clearly supported net orderly liquidation value (NOLV), documented methodology, and detail on inventory composition, condition, and marketability. The stronger and more defensible the collateral value, the more confidently the lender can set an advance rate.
What is the difference between net orderly liquidation value and forced liquidation value?
Net orderly liquidation value (NOLV) is the amount inventory would bring in an orderly, time-bounded sale, net of the costs to sell, with reasonable time to find buyers. Forced liquidation value (FLV) assumes a faster, more compressed sale, such as an auction, and is typically lower. Lenders often rely on NOLV to set the borrowing base and reference FLV as a downside scenario.
How often do lenders require inventory to be re-appraised?
For revolving asset-based credit facilities, lenders commonly require inventory to be re-appraised on a recurring basis so the borrowing base reflects current stock and market conditions. The exact frequency is set by the lender and the loan agreement. We can prepare reports on a recurring schedule to support ongoing collateral monitoring.
Do you appraise inventory for both the borrower and the lender?
Yes. We are engaged by lenders, borrowers, and their advisors, and we prepare an independent opinion of value regardless of who retains us. Our role is to deliver a defensible, USPAP-compliant conclusion the lender's credit team can rely on, not to advocate for either side.
Is a physical inventory count required, or can the appraisal be done from records?
It depends on the assignment and the lender's requirements. Some engagements are completed as a desktop review using perpetual inventory records, cost data, and sales history; others call for a physical observation of the inventory on site. We scope the appropriate approach with you and your lender before we begin.
Get Started
Request an Inventory Appraisal for Asset-Based Lending
Tell us about the inventory and your lending facility, and we'll confirm scope, timing, and a fixed fee up front.