A solvent person is defined in Section 95A of the Corporations Act and Section 5(2) of the Bankruptcy Act as being one that is able to pay all the person's debts as and when they become due and payable. These definitions support the proposition that solvency is determined by reference to cash flow. In addition, there are key operational and financial practices that may put a company at risk of becoming insolvent.

Setout below is the O'Brien Palmer Solvency Checklist. If you answer "Yes" to one or more of the following questions, then your business may be insolvent or at risk of becoming insolvent at some time in the future.