Non-Liquid Asset

A Non-Liquid Asset refers to an asset that cannot be quickly converted into cash or a cash-equivalent without significant loss of value.

Examples of non-liquid assets include real estate, equipment, intellectual property, and long-term investments. These assets often require time to sell and may not be readily available to meet short-term financial obligations.

In contrast, liquid assets, such as cash, stocks, and bonds, can be quickly converted into cash if needed. Businesses and individuals must carefully manage their liquidity to ensure they have enough cash on hand to meet immediate financial needs, even if they hold substantial non-liquid assets.