{"ok":true,"canonical_url":"https://dealroom.so/glossary/illiquid-asset","api_url":"https://dealroom.so/api/public/glossary/illiquid-asset","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"illiquid-asset","term":"Illiquid asset","group":"Reading the business","definition":"This is an asset that cannot be easily or quickly converted into cash without a substantial loss in value. You care because these assets don't contribute to immediate cash flow and can't readily cover unexpected expenses or loan payments.","what_it_means":"Examples include specialized equipment, real estate, or certain long-term investments. While they hold value, you can't rely on them for short-term liquidity. Focus on the business's cash flow and working capital for operational needs.","url":"https://dealroom.so/glossary/illiquid-asset","official_sources":[],"related":[{"slug":"tangible-asset","term":"Tangible asset","url":"https://dealroom.so/glossary/tangible-asset"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"}],"related_questions":[{"question":"How does a lender verify equity injection funds from a borrower's investment account holding illiquid assets?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-from-a-borrower-s-investment-account-holdi"},{"question":"Is a blanket lien on all business assets always required for a 7(a) loan, regardless of loan size or asset value?","url":"https://dealroom.so/for-lenders/questions/is-a-blanket-lien-on-all-business-assets-always-required-for-a-7-a-loan-regardless-of-loan"},{"question":"What is the difference between an asset and stock purchase in a buyout?","url":"https://dealroom.so/sba-7a/questions/what-is-the-difference-between-an-asset-and-stock-purchase-in-a-buyout"},{"question":"How does a recent significant personal asset purchase affect my SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/how-does-a-recent-significant-personal-asset-purchase-affect-my-sba-7-a-loan-application"},{"question":"What if the business I'm buying has intellectual property (e.g., patents, trademarks) as its main asset?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-intellectual-property-e-g-patents-trademarks-as-its-ma"},{"question":"How does an SBA 7(a) loan address the financing of intellectual property as a major business asset?","url":"https://dealroom.so/sba-7a/questions/how-does-an-sba-7-a-loan-address-the-financing-of-intellectual-property-as-a-major-busines"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Illiquid asset","url":"https://dealroom.so/glossary/illiquid-asset","source_type":"DealRoom Data"}}