Glossary

Net assets

Net assets are what a company owns minus what it owes — the book value of the business, and a headline measure of how strong its balance sheet is.

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Assets − liabilitiesBook value
Strength signalPositive is healthy

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.

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.