How tangible assets can affect your business value

Every business owns some form of tangible asset. From fixed assets such as machinery, property and land to current assets such as cash, IT equipment and inventory; they all play a vital role in keeping the company functioning and profitable.

Tangible assets are the backbone of any business and their total value represents the worth of your business that is not typically for sale to customers. These assets are most frequently used to help you raise extra capital when needed; helping you to provide goods to customers, raise cash in an emergency or use as collateral when applying for business loans from a bank. They also play an important role in determining the value of the company if you’re coming to sell it or check its profitability.

Of course some assets can decrease in value after time – for example if you run a fleet of company vehicles, the value you purchased those ten vans for will gradually decrease over time and when it comes to selling them, you will not be receiving the same amount of money as you spent at the time of purchase. This is the same for many tangible assets; from computers through to machinery, over time they will all slowly depreciate in value.

That’s not to say that you have lost money on these items, after all they have helped you to create value for the business; for example those ten vans helped you deliver goods to customers that you would otherwise not have been able to.

One significant difference in this however is the value of land and property. Typically these are two tangible assets that not only do not depreciate but can actually increase in worth over time. Of course depending on the industry you operate in, owning a facility requires a huge initial investment. This is particularly true in the logistics industry, with companies having to outlay vast amounts of money to purchase warehousing facilities and then more likely pay out a further sum to kit it out to their exact requirements.

This is why many small and medium sized businesses are forced to either rent their warehouse premises or use a facility that does not meet their exact requirements. Here at Senaeyat, we want to provide businesses with an alternative solution; one that has the same affordability of renting but can yield a genuine and tangible asset.

As the first lease-to-own warehouse provider in Dubai, our modern facilities are constructed to our clients exact requirements and specifications; featuring state-of-the-art equipment that can accommodate their every need. Needing just 2% down payment to secure the property, we then offer our customers a ten year repayment plan; which at the end sees the lease and premises completely handed over to them.

That means rather than paying a monthly fee to rent a premises that acts as no asset to your business, with Senaeyat for a similar fee each month you will slowly be securing a physical premises; which at the end will significantly increase the value of your business.

Want to learn more? Get in touch with us today!

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