RMA often has a limited number of reporting entities and relies upon averages establishing a low , middle and high for many of the ratios provided. It makes for greater ease, but may put the proverbial square peg in a round whole. RMA offers comparisons by both asset and revenue sizes. IRS data has a considerably larger number of reporting entities, but may create even more questionable averages under categories of asset size. Let s break tradition right here.
Many lenders are collateral based.
Frankly, many have limited assets in order to secure a loan. Perhaps yes and perhaps no. We ll discuss this at some length shortly. A competent appraiser will take a pause here. If the business appears to have a fairly large amount of fixed assets as part of the overall asset mix, this starts the preliminary examination.