{"ok":true,"canonical_url":"https://dealroom.so/glossary/liquidity-of-assets","api_url":"https://dealroom.so/api/public/glossary/liquidity-of-assets","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":"liquidity-of-assets","term":"Liquidity of Assets","group":"Reading the business","definition":"This refers to how easily an asset can be converted into cash without significant loss in value. Highly liquid assets, like cash or marketable securities, are easy to sell quickly.","what_it_means":"Lenders assess the liquidity of your personal assets to determine your ability to meet your equity injection and your capacity to handle unexpected business challenges. For the business itself, highly liquid assets like accounts receivable can serve as good collateral, but illiquid assets like specialized equipment are harder to value.","url":"https://dealroom.so/glossary/liquidity-of-assets","official_sources":[],"related":[{"slug":"marketable-securities","term":"Marketable securities","url":"https://dealroom.so/glossary/marketable-securities"},{"slug":"accounts-receivable","term":"Accounts receivable","url":"https://dealroom.so/glossary/accounts-receivable"},{"slug":"personal-liquidity","term":"Personal liquidity","url":"https://dealroom.so/glossary/personal-liquidity"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"}],"related_questions":[{"question":"How does a lender verify the liquidity of an equity injection from a borrower's investment account?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-liquidity-of-an-equity-injection-from-a-borrower-s-investment"},{"question":"How does a lender evaluate my personal liquidity for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/how-does-a-lender-evaluate-my-personal-liquidity-for-an-sba-7-a-loan"},{"question":"What if my personal liquidity is low, but the business's financials are very strong?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-liquidity-is-low-but-the-business-s-financials-are-very-strong"},{"question":"What if my personal financial statement shows low liquidity, but I have a strong credit score and business plan?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-financial-statement-shows-low-liquidity-but-i-have-a-strong-credit-sco"},{"question":"What happens if my personal financial statement shows low liquidity, but I have a strong credit score and business plan?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-my-personal-financial-statement-shows-low-liquidity-but-i-have-a-strong-cr"},{"question":"What if my personal liquidity is low, but I have a substantial amount in my 401k that I can borrow against?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-liquidity-is-low-but-i-have-a-substantial-amount-in-my-401k-that-i-can"}]},"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 — Liquidity of Assets","url":"https://dealroom.so/glossary/liquidity-of-assets","source_type":"DealRoom Data"}}