Glossary

Tangible asset

A tangible asset is a physical asset you can touch and sell — property, plant, vehicles, stock. Because they are realisable, lenders favour them as security.

2 min read

Physical assetProperty/plant/stock

Clear resale valuePreferred security

Definition

A tangible asset is a physical resource a business owns and uses — land and buildings, machinery, vehicles and fixed assets, plus current tangibles like stock. It has a measurable market value.

In plain terms

If you can point at it and imagine selling it, it is tangible. That realisability is exactly why lenders prefer it as collateral.

Why it matters for your company

Tangible net worth (net assets excluding intangibles) is a figure lenders watch closely. Strong tangible assets can widen your borrowing options and lower your rate. See asset-based lending.