How Liquidating Assets Can Help You Pay Down Financial Debt
If you’re a business owner, life can throw curveballs that are out of our control. Layoffs, unexpected office expenses or a sharp economic downturn can take a toll on our finances. Many business owners will take out loans to handle these surprises. But what happens when you’ve gone too deep and cannot afford to maintain all that debt?
Liquidating your assets can help you earn some quick money to get you out of a pinch. Liquidating means selling anything that can be converted into cash in a well-organized manner. In extreme cases, some people will turn to their personal assets and sell big-ticket items like their home or cars to make ends meet. Of course, they’ll sell smaller valuables like antiques, jewelry, and furniture too.
But if you own a business, you could consider selling things like surplus inventory, closeout merchandise or office equipment. There are many benefits to liquidating your assets. But if you’re considering this route, here are some questions you should ask yourself before going ahead.
Should You Sell?
Always consider what kind of impact selling certain items will have on your life. When we’re in a financial bind, it’s easy to act on impulse. But putting your home or vehicle up for sale could have enormous consequences. For example, where will you live once your house is gone? How will you get to work without a car? There may be instances where you do end up getting a good chunk of money by selling off one asset. But then you’re forced to spend some of that money — plus a lot of effort — looking for a replacement. If you end up in roughly the same financial position as you started, then it may not be in your best interest to sell that asset.
If this is the case, consider looking at other valuables. Look at areas of your life outside the home, such as your business. Are you willing to downsize your operations so you can cut costs? Perhaps you can make money off those extra office chairs and corner desks. Maybe you have some printers, scanners and other IT equipment that could be sold for cash.
Here are the types of assets many buyers would be interested in:
- Warehouse Goods: Production equipment, surplus merchandise, wasted inventory
- Fitness Gear: Workout benches, dumbbells, elliptical trainers
- Electronics: Flat screen TVs, surround sound systems, karaoke machines, speaker sets
- Furniture: Sofas, ottomans, beds, console tables
How Will You Sell?
Once you’ve made a list of the assets you’d like to liquidate, it’s time to consider how you will sell these items. Will you use social media platforms like Facebook Marketplace or other buy & sell websites like Craigslist or Kijiji?
Although the Internet is a useful tool, consider working with a liquidation company to offload your goods in a more streamlined manner. This is an exceptionally productive route if you have larger valuables like business equipment or retail merchandise. Here are some of the benefits of working with a liquidation firm:
- Fair pricing of your assets
- Selling responsibility lies with the liquidator, not you
- Ability to sell your assets quickly due to the liquidator’s extensive network of buyers
- Disposing of unwanted items in an eco-friendly and sustainable manner
A liquidation company like Michaels Global Trading is especially helpful for business owners looking to recover their monetary assets. They’ll not only organize a liquidation sale on your behalf but also market your assets to the right audience. A liquidation firm will have expertise in merchandising and inventory discounting rules to help you get maximum dollars.
Am I Ready to Liquidate?
When you’re ready to sell your assets, there will be some preparations required on your part. If you choose to work with a liquidation firm, you’ll have to help create an inventory list of the assets you own. This list should include the following info:
- Detailed descriptions of each item plus pictures
- Current condition, whether it’s excellent or gently used
- Purchase information and warranty certificates
- Records of repairs
If any of the items are in poor condition, you will have to clean or refurbish them to maximize their potential selling price. As for where the liquidation sale will take place — some companies offer warehouse space. All your assets can be brought to one location where interested buyers can browse the items and negotiate the pricing. By allowing a liquidation services firm to handle logistics, you can offload your assets efficiently and stress-free.
No matter how you go about selling your valuables, be sure to keep records of the entire process. From marketing strategies to sales transactions, these details will be useful if you file for bankruptcy or have to deal with creditors down the line.
For more information on business asset liquidation, call Michaels Global Trading at 1-888-471-5066 or contact us here.