Lending institutions have always lent money based on Tangible Assets such as inventory and account receivables. With the growth in technology and service industries, Intangible Assets have become more accepted by lending institutions in recent years. The Value of these types of business is primarily based on Intellectual Properties such as Patents, Trademarks, Copyrights, and Trade Secrets, which can be individually valuated as a source of asset.
Lending institutions will also look at the overall strength of the business seeking to borrow. A company’s financial statements are a source of review. The inclusion of Enterprise Value in the form of segregated Intangible Assets gives the lender a greater understanding of the company and the risk associated in lending to it.
BUSINESS INTANGIBLES™ will assist in creating a business loan package, showing the lending institution actual assets and value of the company. Using the Enterprise Value Accounting System™ information details the Intangible Assets value, which can greatly assist in the possibility of securing the loan needed.