Liquidity: Financial flexibility of a company

February 14, 2024

Liquidity refers to the ability of a start-up or company to fulfil its short-term liabilities by having sufficient liquid funds or assets that can be quickly liquidated. This financial flexibility is crucial for the operational business, as it ensures solvency and forms the basis for stable growth and adaptability to market changes. Maintaining healthy liquidity enables start-ups to overcome unexpected challenges, capitalise on investment opportunities and strengthen the confidence of investors and business partners.