2 min read
Definition
Net assets equal total assets minus total liabilities, representing the residual value belonging to shareholders — the same figure as total equity. It's a core measure of a company's financial position on the balance sheet.
In plain terms
If you sold everything and paid off every debt, net assets is roughly what would be left. Positive means the company owns more than it owes.
Why it matters for your company
Lenders read net assets as a resilience cushion — negative net assets is a warning sign. See how lenders read your accounts.
Related reading

How to read a balance sheet
A balance sheet is a snapshot of what your company owns, what it owes, and what's left over for the…
Read →
How lenders read your company accounts
When you apply to borrow, a lender reads your accounts differently from how you do. They're hunting for the…
Read →
Retained earnings
Retained earnings are the profits a company has kept back rather than paid out — the accumulated surplus that…
Read →
Current assets
Current assets are the things a business owns that it expects to convert into cash within a year — cash…
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.