DictionarysolventAbility to pay debts
adjective

solvent

Able to pay debts and meet financial obligations.

Careful budgeting keeps the company solvent even during slow months.

Etymology

Latin solvere can mean to loosen or discharge an obligation. Financial solvency is the ability to discharge debts by paying them.

More examples

  • The charity needs regular donations to remain solvent.
  • Despite her large mortgage, she is solvent and pays every bill.
  • Regulators check whether the bank is solvent.

Forms

solvent

solvency noun — The ability to meet financial obligations.

insolvent adjective — Unable to pay debts or meet obligations.

Similar words

liquid
Emphasizes readily available cash rather than overall ability to pay debts.
creditworthy
Emphasizes suitability for borrowing rather than current ability to pay debts.