Liquid capital, also known as fluid capital, is a term used to describe the part of a firms assets that it holds as money. It includes cash balances, bank deposits, and money market investments. Liquid capital is an asset that is ready to convert into cash, and it is important for businesses to have enough liquid capital to cover their expenses and investments. In addition to its use in the business world, liquid capital is also important for individuals who are considering investing in a franchise or starting their own business. In this context, liquid capital refers to the money that an individual has on hand and can readily use to invest in a business. It is important to note that liquid capital is not the money that is used to pay bills and cover daily expenses, but rather the cash that can be invested while still being able to afford daily life. Some other terms used for liquid capital include fluid capital, liquid assets, quick assets, cash required, and realizable assets. Examples of liquid capital include money in the bank, mutual funds, and stocks.