- Solvency is the state of having more assets than liabilities, or of having the power to dissolve something else.
- An example of a business with solvency is a business that can pay all its bills.
- An example of something with solvency is water.
solvency definition by Webster's New World
Webster's New World College Dictionary Copyright © 2010 by Wiley Publishing, Inc., Cleveland, Ohio. Used by arrangement with John Wiley & Sons, Inc.
a solvent state or quality
solvency - Investment & Finance Definition
The ability to pay debts, specifically interest payments on debt, when they are due. Insolvency is the opposite of solvency.Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana. Used by arrangement with John Wiley & Sons, Inc.
solvency - Legal Definition
The ability to pay one’s debts as they come due or as they mature. Implied is the ownership of property of adequate value to secure those debts, should the need arise. See also insolvency.