Russell Percival asked:
Definition of an Asset :
An asset can be defined as an item of value that could be converted to cash that is owned by either an individual or a business/corporation.
Current assets include cash and other assets where it is anticipated that they will either be converted to cash, sold, or consumed within a year, or within the operating cycle.
In this article we have concentrated on unravelling the definitions of 4 main categories of assets:
Current Assets:
1. Cash – considered to be a liquid asset and can include currency, deposit accounts and negotiable items such as cheques, bank drafts and money orders.
2. Short-term investments – this category can include securities that have been procured and held temporarily with the intent of a short term turnover to generate income – classified as trading securities.
3. Receivables – usually calculated net of anticipated uncollectible accounts.
4. Inventory - the inventory value reported on the balance sheet is usually whichever is lower of the historical cost or fair market value.
5. Prepaid expenses - expenses paid in cash and recorded as assets before they are used or consumed (e.g. rent, insurance, etc).
Long-Term Investment Assets
Long-Term Investments can be referred to as “investments.” These are investments that are procured and retained for a lengthy period of time and are not intended for quick turn around/disposal. This type of asset usually includes:
1. Securities e.g. bonds, common stock, or long-term notes.
2. Fixed assets not used in operations – e.g. land retained for sale.
3. Special funds e.g. sinking or pension funds.
4. Subsidiaries or affiliated companies.
Some forms of insurance may also be regarded as a long term investment.
Fixed Assets
Fixed Assets - PPE (property, plant, and equipment) or otherwise termed ‘tangible assets’. Fixed assets are where they have been procured with the intent of continued and long-term use within the business. This can include assets such as land, buildings, furniture, tools, machinery, etc. This type of asset is written off against profit over the anticipated life of the item by charging depreciation expenses (except in the case of land). These can also be regarded as capital assets.
Intangible Assets
Intangible assets do not have physical substance and generally are very difficult to evaluate. This can include such items as intellectual property, patents, copyrights, trademarks, trade names, franchises, goodwill, etc.
Do You Want to Use Your ‘ASSETS’ To Grow Your Business?
Some asset loan companies, such as Asset Loan Co are pleased to offer a quick and simple solution for businesses to facilitate their funding needs. This type of financing is used as an alternative to traditional banking options. By accessing an asset loan, businesses are able to capitalise on their growth if they can adequately resource up and utilise their assets as the key. With access to this type of finance solution, businesses are able to be dynamic and drive their business operations which can be their key to profitability and success.
Businesses are ale to use their assets effectively rather than being trapped in a cashflow deficit. Even with quite a buoyant economic climate for businesses, a lack of working capital can be restrictive for business growth and as a result also restrictive for business “success”. By working smarter and using existing assets to fund cashflow, it could then be possible for businesses to be better managed and have the freedom to grow at a much more significant pace than was previously possible.
Asset Loan Co are proud to have been a lifeline to some businesses and are increasingly focusing on helping companies succeed by providing finance to allow working cashflow.
For more information in relation asset based lending and the operations of Asset Loan Co we invite you to visit us at Asset Loan Co. Don’t waste another day of financial hardship for your business and allow yourself the freedom to grow above and beyond your expectations.
Small businesses seeking information on how Hudson Commercial Capital can help during this financial crisis can call 1.212.564-0031 or can visit
Definition of an Asset :
An asset can be defined as an item of value that could be converted to cash that is owned by either an individual or a business/corporation.
Current assets include cash and other assets where it is anticipated that they will either be converted to cash, sold, or consumed within a year, or within the operating cycle.
In this article we have concentrated on unravelling the definitions of 4 main categories of assets:
Current Assets:
1. Cash – considered to be a liquid asset and can include currency, deposit accounts and negotiable items such as cheques, bank drafts and money orders.
2. Short-term investments – this category can include securities that have been procured and held temporarily with the intent of a short term turnover to generate income – classified as trading securities.
3. Receivables – usually calculated net of anticipated uncollectible accounts.
4. Inventory - the inventory value reported on the balance sheet is usually whichever is lower of the historical cost or fair market value.
5. Prepaid expenses - expenses paid in cash and recorded as assets before they are used or consumed (e.g. rent, insurance, etc).
Long-Term Investment Assets
Long-Term Investments can be referred to as “investments.” These are investments that are procured and retained for a lengthy period of time and are not intended for quick turn around/disposal. This type of asset usually includes:
1. Securities e.g. bonds, common stock, or long-term notes.
2. Fixed assets not used in operations – e.g. land retained for sale.
3. Special funds e.g. sinking or pension funds.
4. Subsidiaries or affiliated companies.
Some forms of insurance may also be regarded as a long term investment.
Fixed Assets
Fixed Assets - PPE (property, plant, and equipment) or otherwise termed ‘tangible assets’. Fixed assets are where they have been procured with the intent of continued and long-term use within the business. This can include assets such as land, buildings, furniture, tools, machinery, etc. This type of asset is written off against profit over the anticipated life of the item by charging depreciation expenses (except in the case of land). These can also be regarded as capital assets.
Intangible Assets
Intangible assets do not have physical substance and generally are very difficult to evaluate. This can include such items as intellectual property, patents, copyrights, trademarks, trade names, franchises, goodwill, etc.
Do You Want to Use Your ‘ASSETS’ To Grow Your Business?
Some asset loan companies, such as Asset Loan Co are pleased to offer a quick and simple solution for businesses to facilitate their funding needs. This type of financing is used as an alternative to traditional banking options. By accessing an asset loan, businesses are able to capitalise on their growth if they can adequately resource up and utilise their assets as the key. With access to this type of finance solution, businesses are able to be dynamic and drive their business operations which can be their key to profitability and success.
Businesses are ale to use their assets effectively rather than being trapped in a cashflow deficit. Even with quite a buoyant economic climate for businesses, a lack of working capital can be restrictive for business growth and as a result also restrictive for business “success”. By working smarter and using existing assets to fund cashflow, it could then be possible for businesses to be better managed and have the freedom to grow at a much more significant pace than was previously possible.
Asset Loan Co are proud to have been a lifeline to some businesses and are increasingly focusing on helping companies succeed by providing finance to allow working cashflow.
For more information in relation asset based lending and the operations of Asset Loan Co we invite you to visit us at Asset Loan Co. Don’t waste another day of financial hardship for your business and allow yourself the freedom to grow above and beyond your expectations.
Small businesses seeking information on how Hudson Commercial Capital can help during this financial crisis can call 1.212.564-0031 or can visit