A Solvent Business Class

CLASS 5 OVERVIEW

Cash is the lifeblood of any business, but what exactly does that mean? In this lesson, we explore two important concepts that will help you see if a company is able to meet its financial obligations in the short and long term: liquidity and solvency.

The last thing an entrepreneur wants to face is not being able to pay their bills. Having a solvent business means the business has the ability to pay its short – and long-term liabilities.

In this class, we build off our class Cash is Queen and take cash flow to the next level.

You’ll learn:

• Why liquidity and solvency are critical to a business’ success
• How to calculate liquidity and solvency
• How to use the results to strengthen solvency and liquidity
• How bankers use liquidity and solvency to assess creditworthiness

What level of skill do I need?

We recommend that you complete Class 4 – Cash is Queen prior to this class.

The program is suited to new and seasoned entrepreneurs. The program is designed to help you understand the concepts and how to apply them to your business. The goal isn’t to turn you into a banker or an accountant and you do not need a background in accounting, finance, or be strong in math to succeed. You’ll see why once we get going!