Define liquidating assets
This means that a business’s assets are sold and turned into cash to pay high-priority creditors.
Perhaps your business can’t pay its debts, or maybe you want to retire.The Small Business Administration (SBA) suggests purchasing your leases if you only have a few more payments to make.Paying $100 to purchase your lease and selling it for $1,000 to someone else is a smart business decision.If you owe the government any taxes, it will have claims to your liquidated assets.Likewise, if you owe your employees wages, they have a claim to the assets.Provide warranties and records with any equipment you plan on selling.
Set the prices of the items you will be selling by working with a qualified appraiser.
Here are some steps to liquidating a business to help the process go smoothly.
Before you can liquidate your business, you must first talk with your business’s lawyer and accountant.
Secured creditors are lenders with collateral, a security promised for loan repayment.
The collateral is different than the liquidated assets.
Regardless of what happens, you should be aware of one of your options for closing your business: small business liquidation. Liquidation is the process of selling a business’s assets to produce enough cash to pay back creditors. If a company is not able to make ends meet, liquidation is one option to pay creditors and close the business.