{"ok":true,"canonical_url":"https://dealroom.so/glossary/solvency","api_url":"https://dealroom.so/api/public/glossary/solvency","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":"solvency","term":"Solvency","group":"Reading the business","definition":"Solvency means a business has enough assets to cover its debts and can meet its long-term financial obligations. It's a key indicator of financial health.","what_it_means":"When you're evaluating a target business, you need to confirm its long-term Solvency. Look at the Balance Sheet to see if assets exceed liabilities. A business that isn't solvent may have trouble meeting future Debt Service Requirements, even if it currently has strong Operating Cash Flow.","url":"https://dealroom.so/glossary/solvency","official_sources":[],"related":[{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"},{"slug":"debt-service","term":"Debt service","url":"https://dealroom.so/glossary/debt-service"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"}],"related_questions":[]},"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 — Solvency","url":"https://dealroom.so/glossary/solvency","source_type":"DealRoom Data"}}