Glossary · Reading the business
Tangible Assets
In short
Physical assets that have a material form and can be touched, such as equipment, inventory, real estate, and vehicles. These are often used as collateral for loans.
What it means in a deal
When evaluating a business, identify and appraise its tangible assets. These provide a baseline for the business's liquidation value and are key components of your loan collateral. An accurate valuation of these assets is critical for underwriting and ensuring sufficient collateral for your 7(a) loan.
Related terms
Common questions about Tangible Assets
- What if the business I'm buying has limited tangible assets for collateral?
- What are the typical collateral requirements if the business has very few tangible assets?
- Can a 7(a) loan be secured by a lien on intellectual property alone if tangible assets are minimal?
- If the acquired business has no significant tangible assets, what types of *alternative* collateral might an SBA 7(a) lender require?
- Can an SBA 7(a) loan finance goodwill as a significant portion of the acquisition, even if tangible assets are minimal?
- Can an SBA 7(a) loan be used to purchase a business with a negative tangible net worth?
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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