This refers to a situation where an individual, a business or a government is unable to gather enough cash to meet its payment obligations to lenders. A liquidity crisis is different from a solvency crisis where the total value of an entity’s assets is less than the value of its overall liabilities. A business facing a liquidity crisis may be unable to meet its liabilities in a timely manner, but the value of its assets may still be much greater than that of its liabilities. In some cases, the inability to meet its immediate obligations can force a business to sell its assets at low prices to raise immediate cash. Such a fire sale of assets can end up threatening its solvency.