What are tangible assets?
tangible assets are the possession of an individual or company that is real and real instead of being hypothetical. Are in contrast to things that an individual or business can hold that are not tangible. Examples of intangible assets include things such as copyright ideas, patents or intellectual property. Although these things may have a chance to be financially beneficial at the future point, there are currently something that can be sold for great profit.
On the other hand, most tangible assets can be easily converted to cash or already cash. The amount of money on your bank account is tangible, as well as the property you own, such as cars, houses or boats. These tangibles, especially if you want to provide a loan, are usually the types of collateral you provide a loan. Most banks do not offer loans to people without tangible assets, although they have intangible assets that have the potential to earn money in the future.
in business, fyZicka and real assets may be considered when the company looks for a loan. The assets included in the list of tangible business assets include a business inventory, the assets they do and the equipment owned by the company. The real assets of Lumber Company could include its current lumber shares, any machines used for the production of timber, the plant where the company operates, and any cash that the company currently holds.
Sometimes when trying to secure a loan, banks can only consider some assets as an acceptable collateral. In the above example at the Lumber Company, the bank does not have to consider the inventory or equipment an ideal means to ensure the repayment of the loan. First, the inventory can change and there is nothing to prevent lumbering of its lumber. Secondly, if the company stops operation, the creditor then stuck with the liquefaction of real assets. The creditor does not need to afterThe seizure with the sale of timber or equipment and it is more likely to consider tangible assets of monetary balances and real estate, because cash is easy to take and the property is quite easy to sell.
However, when the company is sold, real assets are often considered part of the sale price. A woodcarving company with new machines and a considerable stack of timber will receive a higher price than a simple warehouse with outdated machines and no supplies. It is comparable to selling your house, car and ship at the same time, instead of selling one assets individually.
It is also used for intangible assets. Some intellectual property, patents or development that are not yet in production can be so attractive with a potential profit range that it is worth buying, or even lend money to make mental ownership and create tangible assets such as cash. Some companies are purchased and sold on the basis of their patents or earnings potentialThe high price due to this potential of earnings, although the company's palpable assets are not currently highly valued.