Amortized assets are tangible or intangible assets that are to be paid off over time. They can include loan payments, mortgage payments, and lease payments. Amortization is the process through which the cost of an asset is spread out evenly over its lifespan. When amortizing, you take into account the time value of money as well as any associated costs. For example, a mortgage is amortized over 30 years and every payment made is applied towards both the principal amount and interest due. By stretching out the payments, it helps to reduce the burden of having to pay the entire cost upfront. Amortized assets provide businesses with plenty of financial flexibility, allowing them to scale-up their operations without taking on too much risk.