Net worth

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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.


A comparable measure for an individual, often in the context of assessing 'high net worth' in the context of wealth management services.

See also