What is liquid capital?

Liquid capital, also called quick assets, liquid assets and fluid capital, is an asset that's ready to convert into cash. The opposite of liquid capital is an asset, such as real estate, that's not as easy to convert into funds.

What is non-liquid capital?

Non-liquid assets, or illiquid assets, are types of assets that cannot be easily converted into cash within a short period of time. These assets may include things like real estate, businesses, and physical assets such as equipment and machinery.

What is the opposite of liquid capital?

The opposite of liquid capital is an asset, such as real estate, that's not as easy to convert into funds. Prospective business owners and franchisees care about liquid capital because having enough available cash or liquid capital is essential for starting a company.

Is cash a liquid asset?

If assets are liquid, they can be easily transferred into cash, which is the most liquid asset of all, or at least acquire something close to equal value. As a result, those people with a great deal of liquid capital are often generally in a sound financial position even when problems arise. Cash is a form of liquid capital.