close to insolvent

USAGE SUMMARY

The phrase "close to insolvent" is correct and usable in written English.
It can be used to describe a financial situation where an individual or organization is nearing insolvency or unable to meet financial obligations. Example: "After several poor financial quarters, the company is now close to insolvent and may need to seek external assistance."

✓ Grammatically correct

News & Media

Human-verified examples from authoritative sources

Exact Expressions

1 human-written examples

They are close to insolvent.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

57 human-written examples

That is too high, but Hungary is not close to being insolvent.

The Economist

Financial watchdog Monitor has warned the trust is close to becoming insolvent.

BBC

Finance watchdog Monitor has warned the trust is close to becoming insolvent.

BBC

Banks had to be bailed out by taxpayers during the financial crisis because they didn't have the reserves to cover loans and mortgages that weren't repaid, meaning that they were, or were close to, being insolvent.

BBC

When the loans went bad, there were thousands of banks with at least enough bad loans to render them insolvent or close enough to insolvent that the banks' depositors and other creditors were not going to wait around.

The New York Times

When any entity in the financial system has little equity relative to its debts, it has moved closer to becoming insolvent.

The New York Times

Rather than seize the opportunity to close insolvent banks, they chose to prop up all the big ones, regardless.

The Economist

But dealing directly with them, and ensuring they do not game the system, will take regulators into uncharted territory.It is banks that matter most, however, and some of the biggest are suspected of being insolvent or close to it.

The Economist

Many banks, including some of the largest, are effectively insolvent or very close to it.

The New York Times

Senator Charles E. Grassley of Iowa, referring to Mr. Lew's lucrative but short time at Citigroup, commanded him to "explain why it might be morally acceptable to take close to a million dollars out of a company that was functionally insolvent and about to receive a billion dollars of taxpayer support".

The New York Times

Expert writing Tips

Best practice

When describing a company's financial health, use "close to insolvent" to indicate they are nearing the point where they cannot pay their debts. Provide specific financial metrics to support this claim.

Common error

Don't use "close to insolvent" unless there's strong evidence, such as consistently negative cash flow or failure to meet debt obligations. Overstating a company's financial distress can lead to legal repercussions.

Linguistic Context

The phrase "close to insolvent" functions as a prepositional phrase modifying a noun or pronoun, indicating a state of being near insolvency. Ludwig confirms its usability in written English.

Expression frequency: Rare

Frequent in

News & Media

100%

Less common in

Formal & Business

0%

Science

0%

Academia

0%

Ludwig's WRAP-UP

The phrase "close to insolvent" is a grammatically correct and usable phrase to describe a state of nearing financial insolvency. Ludwig indicates its proper usage. Although currently found rarely in the examined data, its primary context is in News & Media. When using this phrase, ensure it is supported by factual evidence and specific financial indicators to avoid misrepresentation. More formal alternatives include "nearing insolvency" or "on the verge of insolvency".

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

nearing bankruptcy

This alternative focuses specifically on the state of approaching bankruptcy.

on the brink of insolvency

This emphasizes the precariousness and imminent nature of the financial situation.

almost bankrupt

This alternative simplifies the phrase while maintaining a high degree of similarity.

verging on insolvency

This suggests a gradual transition towards insolvency.

facing imminent financial collapse

This alternative highlights the severity and impending nature of the financial crisis.

in a precarious financial state

This broadens the description to a general state of financial risk.

financially vulnerable

This focuses on the susceptibility to financial hardship.

at risk of becoming insolvent

This explicitly states the potential for future insolvency.

experiencing severe financial difficulties

This describes the challenges without directly referencing insolvency.

on thin ice financially

This uses a more informal idiom to convey a state of financial instability.

FAQs

How can I use "close to insolvent" in a sentence?

You can use "close to insolvent" to describe a situation where an entity is nearing its inability to pay its debts. For example: "After several quarters of losses, the company was "close to insolvent"."

What is a more formal alternative to "close to insolvent"?

A more formal alternative would be "nearing insolvency" or "on the verge of insolvency" to describe a company's financial state.

What does it mean when a company is "close to insolvent"?

It means the company is experiencing severe financial difficulties and is at high risk of being unable to pay its debts.

Is there a significant difference between ""close to insolvent"" and "insolvent"?

Yes, ""close to insolvent"" means the company is nearing insolvency but not yet fully unable to pay debts, while "insolvent" means it is already unable to meet its obligations.