Soft Assets

How soft assets works

The term is not a single accounting or legal classification. Funders consider what can be identified, owned, removed and resold, alongside the borrower’s ability to pay. A package may include installation or software that has little recoverable value.

Practical UK business example

A clinic upgrades its booking software and IT infrastructure. The funder distinguishes the tangible hardware from licences and implementation services rather than valuing the entire invoice as recoverable equipment.

Illustrative example only; not a finance quotation or a client case study.

Why it matters

Understanding recoverable value helps explain why a lender may require a stronger borrower profile, a larger upfront contribution or different security for a particular project.

Limitations and common misconceptions

Soft does not mean unimportant or automatically ineligible. Different lenders define these assets differently, and not every supplier cost or service component can be financed.

Explore asset finance to discuss how the structure relates to your business.