2 min read
Definition
An intangible asset is an identifiable non-monetary asset without physical substance — patents, trademarks, licences, software, and purchased goodwill. It is amortised over its useful life.
In plain terms
You cannot warehouse a brand, but it can be a company’s most valuable asset. The catch is that intangibles are harder to value and to sell in a hurry.
Why it matters for your company
Lenders usually lend more readily against tangible assets and discount intangibles heavily, because they are hard to realise. Know your tangible net worth. See goodwill.
Related reading
Tangible asset
A tangible asset is a physical asset you can touch and sell — property, plant, vehicles, stock. Because they…
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Goodwill
Goodwill is the extra a buyer pays for a business above its identifiable net assets — the value of its brand,…
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Amortisation schedule
An amortisation schedule is the table breaking every repayment into interest and capital, showing how the…
Read →Fixed asset
A fixed asset is a long-term asset you use to run the business — property, plant, vehicles — not one you sell…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.