Solvency is the ability of the business to pay all its debts if it sold out. If the total value of all assets is more than all debts, the farm or business is said to be solvent. If the sale would not generate enough cash to pay off all debts, the farm is insolvent. Solvency is important in evaluating the financial risk and future borrowing capacity of the business. It can also help evaluate and communicate how much both the producer and the lender have invested in the business.
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What does the term "solvency" mean in relation to operating a business?
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E-Commerce Learning Modules
- A Beginner's Guide to e-Commerce. This module serves as a great stepping stone toward turning rural life skills into e-commerce ventures.
- e-Commerce as a Strategy for Improving Business VitalityEntrepreneurs considering using e-commerce can learn from the experience of others.
- Helping Artisans Reach Global Markets The content of the course provides artisans with sound, research-based information to make decisions on whether or not to develop a Web page, how to do it, utilize resources, and evaluate effectiveness.
- Marketing Food Specialty Products OnlineThe purpose of this learning module is to assist food retailers in making decisions on the use of online technologies in their marketing and planning strategies.
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Build Your Business
- Online Tutorial on Farm Leasing
- Strategies to Improve Farm Business Management
- Visual Merchandising: The Silent Salesperson. View a recording of a marketing workshop conducted by Glenn Muske, Oklahoma State University. The workshop covers some key aspects of display as a sales tool. The workshop is approximately 45 minutes long.
Building Entrepreneurial Communities
- E-Commerce Module:Connecting Rural Communities
- Strengthening Competitive Advantage of Rural Businesses with e-Commerce and Experience Economy Strategies
- Mini-Course: Developing Diversified & Value-Added Agribusinesses
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