WHY DOES AN ENTERPRISE WHEN MORTGAGE ASSETS TO BORROW CAPITAL NEED TO VALUATION?

A mortgage loan is a form of a loan with collateral to secure your loan. The mortgaged property must ensure that there are still interests for the borrower. So, you need to appraise the business value when taking a bank loan.

Why do businesses have to appraise value when needing collateral to borrow capital?

According to Vietnamese law, mortgage loans require borrowers to prove their finances to ensure their ability to repay. Accordingly, if an enterprise needs to borrow a mortgage for business investment, purchase, sale, merger, etc., it is necessary to appraise the business value.

Although there are many types of collateral for loan purposes, depending on the regulations of each bank, the collateral for the loan will be different and the loan value is also different. In general, the current lending level of banks is 70% of the collateral value. Todays most common collaterals include real estate papers, valuable papers such as stocks or government bonds, cars, savings books, red books or red books of real estate, contracts, etc. life insurance…

The assets are mortgaged to the bank to ensure that the loans are safe and can recover loans when they are due. Therefore, such collateral must be appraised according to the standards and regulations of the Law on Valuation of Vietnam. From there determine the exact value so that banks or credit institutions have a basis to accept customers loan applications.

Business valuation serves main purposes

• Buy, sell, merge, associate, and liquidate businesses
• Investing, contributing capital, buying and selling securities of enterprises
• Equitization, a listing of securities on the stock market
• Borrowing capital for business investment
• Tax
• Dispute settlement and handling

Currently, banks often associate with independent, specialized appraisal units to value the collateral assets of customers to ensure the most objectivity and accuracy.

For more information about the application, process, and business appraisal fee, please contact SunValue for free consultation support.

With more than 20 years of establishment and development, SunValue is proud to become one of the leading valuation units in Vietnam, the leading brand in Vietnam 2023, strong brand in Asia 2021, SunValue Brand with the aspiration to reach out to The world has affirmed its pioneering position in applying technology in valuation, helping to monitor real estate price fluctuations, and completing price data to support the development of Vietnam and international real estate markets.

The system with 4 branches and more than 50 transaction offices nationwide, 2 representative offices in the US, and Australia, ... provides valuation services such as business valuation, real estate appraisal, and project valuation. investment projects, resource valuation, real estate appraisal, etc., for investment, loan, business merger & acquisition, equitization, debt settlement, study abroad...

SunValue – National brand that has actively contributed to the development of the appraisal industry in Vietnam.