Liquiditeit

Liquidity refers to the availability of cash and assets readily convertible into cash in relation to current liabilities. Under Dutch law, this concept is relevant to the assessment of a company’s financial position, particularly in the context of annual accounts, credit provision and insolvency proceedings.

A liquidity shortage may result in inability to pay, leading to a suspension of payments or bankruptcy. In practice, liquidity is assessed by courts, trustees and financiers on the basis of cash flows and liquidity forecasts in order to determine the going-concern status of the enterprise.