Small business owners experiencing an unexpected cash deficit may find themselves in a position where it’s necessary to liquidate portions of their assets. If you’re a business owner selling your company’s assets, you may have to choose between how much you can earn, and how quickly you can sell those assets.
If a business is failing and needs cash now, the proprietor may choose to sell off assets quickly. If this is done, however, the assets may not sell for their full worth. When a company has time to liquidate assets, they can make more money, but this process can take months (or even longer in some cases!).
Here are some of the fastest ways to liquidate your assets and make some money.
Stocks and Bonds
The majority of small businesses do not have stocks and bonds. If the company does, these assets will liquidate the fastest on the open market. It generally requires less than a day to convert these assets into cash.
Accounts Receivable
Financing companies may purchase accounts receivable assets. Receivable assets happen when a customer does not pay for a purchase within a set period. These assets appear on the balance sheet. Once the creditworthiness of the account is confirmed, account receivable financing occurs within a few days. The full value will not be received.
Intellectual and Proprietary Property
Small business owners often develop intellectual property, patents, social media networks, and websites. These small assets often get sold to competitors, or another individual interested in establishing a similar business.
Auctions
It requires time to establish an auction for assets. There must be a minimum bid for each asset. Owners should have photos taken, a written description, and an auction house hired. After delivering the assets, the auction house sends a check approximately a week after the auction.
If the assets are substantial, additional delivery time is necessary. Only a few moments are required to place certain assets on a site for online auctions. Photos and descriptions are still essential, but the funds are received immediately at the close of the sale.
Landlords
Landlords for physical businesses may be interested in purchasing the actual site of the business. This is especially true for businesses like restaurants and bakeries that have specialized equipment. Often, when an owner closes their place, they’ll want to sell everything that’s inside too. Having the site ready for the next tenant provides the motivation to do so.
Going-Out-of-Business Sale
This type of sale has an unsavory reputation. Numerous retail businesses appear to go out of business every year, and some states have restrictions. Once the transaction occurs, assets are quickly converted into cash. The recommendation is to limit the sale to a three day period. The prices should decrease by fifty percent daily. The majority of assets will be gone by the time the third day ends.
If liquidating assets does not successfully alleviate your debt, consider speaking with a local bankruptcy lawyer. The Louisiana bankruptcy lawyers at E. Orum Young Law Offices have filed the most bankruptcies in Northeast Louisiana and can help guide you through this tough time. Contact us today at (318) 450-3192 for a free case evaluation. Our Trial Guarantee ensures that we will take your case to trial per your request.