Glossary · Reading the business
Intellectual Capital
In short
The intangible assets of a business that contribute to its value, such as patents, trademarks, proprietary processes, customer lists, and employee knowledge. It's often the hidden value driver.
What it means in a deal
When evaluating a business, assess its intellectual capital beyond just physical assets. Strong intellectual capital can provide a competitive advantage and justify a higher valuation. Identify what unique knowledge, systems, or brand equity you are acquiring and how well it is protected and transferable.
Related terms
Common questions about Intellectual Capital
- Can an SBA 7(a) loan finance the purchase of intellectual property?
- Does the value of intellectual property I already own personally count towards my equity injection?
- How does an SBA 7(a) loan handle intangible assets like intellectual property as collateral?
- Does the SBA require a lien on intellectual property, like trademarks or patents, as collateral?
- Can an SBA 7(a) loan finance the purchase of intellectual property, like patents or trademarks?
- Are intellectual property assets, like patents or trademarks, acceptable collateral for an SBA 7(a) loan?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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