Why is the lender’s value lower than the purchase price?

The price may include scarcity, soft costs, dealer margin, customisation, or assumptions the lender does not recognise as recoverable security value.

Who pays for an independent valuation?

This depends on the lender and application. Any valuation cost should be disclosed before it is incurred.

Is this personalised financial advice?

No. This page provides general educational information. A suitable structure depends on the asset, applicant, intended use, and lender assessment. Seek independent professional advice if you are unsure.

Asset finance questions answered

How does lender valuation work?

Direct answer: A lender valuation estimates the value it is prepared to recognise when deciding how much to advance and how to structure the facility. It may differ from the asking price, accounting value, insurance value, or the value the owner expects.

Discuss your application Asset finance overview

How lenders look at it

The question behind the headline

For standard new assets from established suppliers, the invoice and market comparables may be sufficient. Used, specialist, private-sale, connected-party, imported, or unusually priced assets may require an inspection or independent valuation.

Credit assessment

What is likely to influence the decision?

Basis of value

The lender may consider market value, orderly-sale value, or a more cautious recovery value depending on its policy and the transaction.

Evidence and inspection

Invoices, comparable sales, serial numbers, condition, age, hours, maintenance, provenance, and professional appraisals can support the assessment.

Advance against value

Funding may be based on the lower of purchase cost and accepted value, with a deposit required where the proposed advance exceeds lender appetite.

Possible structure

How the facility may be arranged

Valuation can influence advance level, deposit, term, balloon, pricing, and whether further security is requested. It is one part of underwriting; a strong asset does not replace the need for affordability.

Important risks

What needs balancing

A valuation is prepared for a defined purpose and is not a guarantee of future sale price. Markets, condition, usage, technology, and buyer demand can change after completion.

Prepare the application

Information a lender may request

Supplier invoice and asset description

Serial numbers, age, hours, condition, and location

Service history, provenance, and comparable evidence

Independent valuation or inspection when requested

Who you could speak to

Arran Turner

Managing Director

General commercial finance and how Sorbus works

Profile

Graham Nash

Commercial Finance Director

Business loans, cash flow and wider commercial funding

Profile

STEP 1
A conversation with a broker
You talk to a real Sorbus broker about the business, the purpose and what is affordable. No application at this stage.
STEP 2
Credit placement
If you choose to go further, we prepare the case and decide which lenders on our panel of 150+ are worth approaching.
STEP 3
Lender assessment
The lender, not Sorbus, underwrites and makes the credit decision. Approval is never guaranteed.
STEP 4
Documentation
If a lender offers terms and you accept, we help coordinate agreements and payout paperwork with you.

Every step after the first is optional. You can stop after the conversation. Sorbus is a broker, not a lender.

Client journey

Explore real client journeys

Read how real businesses approached a funding goal, what Sorbus arranged and what happened next.

Browse anonymised case studies

Enquire about How does lender valuation work? enquiry

Start with a conversation

Tell us a little about what you need and who you would like to speak to. No obligation, no credit check at this stage. We aim to respond within one business day, Monday to Friday, 9am to 5:30pm.

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Unique to Sorbus Finance

Optional: Business Finance Health Check

Not sure how a lender may view your application? Our free Finance Health Check helps you identify strengths and gaps before you apply.

Take the short Health Check

Free · No credit check · Not required before you talk

Want the full picture? The full fact-find is longer and also optional.

Email us anytime

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Frequently asked questions

Key points before you proceed

No. Approval, amount, deposit, term, pricing, security, and conditions are subject to lender assessment and individual circumstances.

Discuss the asset and your circumstances

A Sorbus Finance adviser can help you understand the information lenders may need and the structures that could be considered, without promising an outcome.

01246 383500

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