solvency[säl′vən sē, sôl′-]
- 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.
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.
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.