GlossaryEN1 min readUpdated: Oct 29, 2026

Liquidity

Liquidity is a company's ability to meet its short-term payment obligations at any time.

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Last updated: 29 October 2026

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Logistics concept

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Definition & Explanation

Liquidity is a company's ability to meet its short-term payment obligations at any time. In road transport it depends heavily on the balance between running costs - such as diesel, wages and leasing instalments - and the timing of payments received for freight invoices. A diesel surcharge that is adjusted only with a delay after purchase prices rise, or a long payment term set by the client, puts additional strain on a transport company's liquidity.

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