Business, Legal & Accounting Glossary
A company’s ability to pay its creditors when funds are due. The opposite of solvency is insolvency.
The ability of an individual to pay his or her debts as they mature in the normal and ordinary course of business, or the financial condition of owning property of sufficient value to discharge all of one’s debts.
Many countries are facing solvency problems in their social services programs as longevity increases and birthrates fall.
If a business does not have enough liquidity, they may also have an issue with solvency.
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This glossary post was last updated: 9th October, 2021 | 0 Views.