Plant and machinery valuation for finance and lending

A valuation at origination records what the financed asset is and the evidence for its value on the loan date: make, model, serial number, year, hours or odometer, configuration and comparable completed sales.

The same record serves the credit file, later revaluation and the value at origination used in financed emissions attribution.

Portfolio revaluation between reporting dates, with movement traced to the assets and to the market.

• Asset-level values for each financed machine, consolidated by asset class and industry
• Market movement and indexation analysis between reporting dates
• Exceptions where register details do not identify the asset
• Documented valuation basis, date, inputs and assumptions

Under PCAF’s motor vehicle loan method, the attribution factor is the outstanding loan amount divided by the total value of the vehicle at loan origination. Where the value at origination is unknown, the standard says lenders should take a conservative approach and assume 100% attribution.

Where a loan record does not hold the value at origination, our asset-sales evidence supports an estimate for the same make, model and year at the origination date.

• PCAF motor vehicle loans method

Valuation models are built for registers of several thousand assets. Each record is identified to make, model and serial number, and unmatched records are listed.

• Asset register reconciliation and portfolio review