What is an example of a solvency certificate?

A solvency certificate is a document issued by a financial institution or auditor that confirms an individual's or company's ability to meet its long-term financial obligations. For example, a company applying for a loan may present a solvency certificate stating that it has sufficient assets and cash flow to cover its debts, thereby assuring the lender of its financial stability. This certificate is often required in business transactions, loan agreements, and mergers or acquisitions to demonstrate financial health.