Risk Management Services
Mitigate Your Exposure to Risk and The Cost of Risk Exposure
Lets face it, equipment is not inexpensive. The purchase and leasing of your equipment is critical to running your business, and will take up a huge part of your annual budget.
Engaging in the right risk management service reduces your exposure to financial risk in equipment purchases and leases.
What kind of financial risk?
- Financial loss due to lease terms that favor the lessor.
- Inaccurate equipment valuations, allowing you to sell or buy at a loss.
Sonoran Equipment Appraisal will identify your exposure in a lease or purchase agreement. We will also appraise your current equipment, accurately projecting its value at every point of its life cycle and/or lease term.
Where Can You Lose Money?
Financial loss generally takes place at three points in the lease/buy cycle:
- Not knowing whether it’s better to lease or buy. This decision should be made based on different factors, such as an asset’s value in both the short- and long-term.
- An inaccurate residual value forecast of an asset. The residual value of your equipment at the end of a lease can provide cash incentives when you return the equipment. This residual value will also provide you leverage when it comes to negotiating a new lease. But if the forecast is too low, you could see less upon returning the equipment or negotiating its current value.
- Not understanding an asset’s residual value when it’s time to dispose of it. Not knowing this could mean you sell it at a far lower price than it’s worth.
Your capital is at risk at every point within an asset’s lifecycle. Even if only one of those risks results in a loss, multiply that loss by the number of assets in your organization and you’ll see how large the damage to your bottom line could be.
Benefits of a Risk Management Program
Sonoran Equipment Appraisal can identify the risk potential and mitigate losses by helping you:
• Gain negotiating power or receive cash incentives from lease returns.
• Resell your equipment at the best possible price.
• Save on insurance premiums by properly assessing your equipment’s value.
A good risk management program provides a blueprint for the life of your equipment, helping you retain its value. Sonoran Equipment Appraisal will establish that risk management plan as well as provide all equipment valuations, so that you’ll always know an asset’s true value.