What is liquidating your assets
When is the time to consider the asset liquidation process?The three main reasons businesses consider liquidating assets are 1) when assets are no longer needed (surplus assets), 2) the business needs additional working capital, or 3) to satisfy creditors.To establish the liquidation value of your assets, work with a qualified appraiser.Obtain a written liquidation value appraisal before you consider any purchase offers.
Keeping good records of the sale of your property will protect you in case you file for bankruptcy or a creditor later questions your asset liquidation process.
You may also need this information for your tax returns.
Inventory the assets your business owns and wishes to liquidate.
Your list should include a detailed description of each item, photograph, purchase information, condition, warranty certificates and repair records, if applicable.
If some items need painting, repair or general cleaning, take care of it at this stage to maximize sale prices.
As you liquidate these assets, you'll also want a record of the marketing process, purchaser, and the amount received.