Net worth: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson m (Spacing 21/8/13) |
imported>Doug Williamson (Expand.) |
||
| Line 1: | Line 1: | ||
1. | |||
''Loan documentation''. | ''Loan documentation''. | ||
| Line 6: | Line 8: | ||
For example, ''Tangible net worth'' excludes intangible fixed assets from the total figure. | For example, ''Tangible net worth'' excludes intangible fixed assets from the total figure. | ||
2. | |||
A comparable measure for an individual, often in the context of assessing 'high net worth' in the context of wealth management services. | |||
== See also == | == See also == | ||
* [[Covenant]] | * [[Covenant]] | ||
* [[High net worth]] | |||
* [[Tangible net worth]] | * [[Tangible net worth]] | ||
* [[Wealth management]] | |||
Revision as of 12:57, 12 August 2016
1.
Loan documentation.
Broadly, Net worth is the value of equity, based on book values, which a borrower covenants to maintain at a minimum absolute or relative level (for the protection of the position of the lender).
The definition of Net worth for covenant compliance purposes will often be a point of negotiation between the lender and the borrower.
For example, Tangible net worth excludes intangible fixed assets from the total figure.
2.
A comparable measure for an individual, often in the context of assessing 'high net worth' in the context of wealth management services.
