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Glossary · Reading the business

NADA Guide

In short

This is a widely used valuation guide for vehicles, boats, and other equipment. Lenders often use it to assess the fair market value of vehicles included as business assets or collateral.

What it means in a deal

If the business includes vehicles or heavy equipment, the lender will use the NADA guide (or similar appraisal service) to determine their value for collateral purposes. Don't assume the seller's stated value is accurate; the NADA guide provides an objective, third-party assessment. Factor this into your due diligence to ensure the collateral base is sufficient for the loan.

Common questions about NADA Guide

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Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.

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