{"id":96765,"date":"2019-09-17T06:18:40","date_gmt":"2019-09-17T06:18:40","guid":{"rendered":"https:\/\/mailrelay.com\/blog\/2026\/09\/29\/liquidity-and-financing\/"},"modified":"2026-10-14T12:27:54","modified_gmt":"2026-10-14T12:27:54","slug":"liquidity-and-financing","status":"publish","type":"post","link":"https:\/\/mailrelay.com\/en\/blog\/2019\/09\/17\/liquidity-and-financing\/","title":{"rendered":"Liquidity and financing: how to get liquidity for your company or startup"},"content":{"rendered":"\n

If you’re about to start a project, you’ve surely thought about the topic of liquidity and financing<\/strong>.<\/p>\n\n

These are two concepts that go hand in hand and that can be a nightmare and a real headache for entrepreneurs, at least in the early stages of the business.<\/p>\n\n

However, despite the aversion they may cause in people, it is a key topic for every startup, since your company’s financial future depends on them, and on it staying stable in the long term.<\/p>\n\n

Of course, other factors come into play too, but for the most part, liquidity and financing play a crucial role.<\/p>\n\n

But what are liquidity and financing, and why are they so important for entrepreneurs?<\/strong> We’ll talk about this and related topics in this post, so let’s start with the basics: their definition.<\/p>\n\n\n

What is liquidity?<\/h2>\n\n

Liquidity is a company’s ability to convert its various assets into cash, without losing their value and in as short a period of time as possible.<\/p>\n\n

This money is generally used to cover the various short-term expenses a company has.<\/p>\n\n

Now, it’s common for a company, and in fact even an individual, to hold various \u201cassets\u201d, which in general would be any property that can be transferred for money, from cash such as banknotes, coins or bank deposits to properties or goods such as real estate, cars and the like.<\/p>\n\n

And it’s important to keep in mind that one asset can be more or less liquid than another. Let’s start, for example, with the banknote, the coin or the bank deposit.<\/p>\n\n

These are considered an asset of the company, but with the peculiarity that they have total liquidity,<\/strong> that is, you can hand over a \u20ac500 banknote, which would be an asset, as a direct representation of money, since it takes effect immediately; the same happens if you make a transfer or pay for a product with coins.<\/p>\n\n

On the other hand, this isn’t the case with other assets such as a company’s shares or a piece of real estate, since both take more time to turn into cash, as you have to wait for a buyer willing to pay for that asset, to the point where the value of that asset may change.<\/p>\n\n

This means they are considered less liquid assets.<\/strong><\/p>\n\n

\"Why<\/figure>\n\n

<\/p>\n\n

Why is liquidity important for a startup?<\/h2>\n\n

As an entrepreneur, you need to cover a variety of expenses, whether an investment in acquiring raw materials, machinery or renting premises, or production costs and paying your employees.<\/p>\n\n

To cover all these expenses, most of which are regular and necessary, you need good liquidity, that is, assets you can convert into cash immediately and that allow you to cover these needs at any time<\/strong> so you can keep your business running.<\/p>\n\n

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