Lenders pride themselves in making professional decisions that protect them from losing money. The collateral that supports the funding can represent all categories of equipment. The challenge the lender has is understanding what the equipment really is, how it is used, will it support the value assigned, and is the equipment on location in fact the equipment listed in the funding documents.
LMI personnel have been sent on-site to inspect assets so these issues can be addressed. One advantage of an on-site inspection is the inspector is often given an opportunity to meet with end user management and operations staff. If the equipment is new the inspection is simpler in scope since maintenance logs and wear and tear issues are very limited. If the equipment has been on site for an extended period then one critical person the inspector wants to interview is the individual over the equipment maintenance area. This person can acquaint the inspector with the full operation and how the equipment to be inspected fits into their operation. Dialogue can take place regarding hours of usage, reliability, upgrade / overhaul history, future plans for the equipment, etc. The inspector can get that “hands on” exposure to the equipment in a true working environment. Pictures can be taken with the unit in operation, or at least in the position / location within the office or plant. The inspector can make notes of any add ons found or discrepancies discovered.
The inspector also has a chance to not only verify that serial numbers and model identifiers are in line with the documentation provided by the client, but can make note of anything that may seem out of line, such as serial number plates that look like they are different from other similar machines, are attached in a different manner (spot welded vs screw or rivet). Personal observation provides a unique perspective of overall condition, how used and hourly shift assignments (if observed in use late at night it may not be on a standard 8 hour shift schedule), adverse environmental concerns such as corrosive chemicals near by, outside use vs required indoor operation, etc.
A good inspector can possibly gain some inside information from end user staff that would not normally be made available through correspondence by mail or from a simple audit of the equipment.
Finally, an on-site inspection gives the inspector the opportunity to request copies of the accounting / asset reports to determine when the equipment was placed in service and what the booked cost may have been.
LMI personnel are versed in all aspects of inspection work and take professional pride in generating an inspection report for the client that can be used with confidence.