When your business has finally reached the endpoint, you have to think of ways so you can save your business assets. Closing down your business is deemed as the best solution to this kind of situation. This decision involves turning the remaining assets into cash so you can pay your suppliers and creditors. If you do not owe someone, you can keep the money for yourself. In liquidating assets, you should know what to expect.
Make a list of your business assets
The first thing you have to do before your business goes into liquidation is to identify your business assets and liabilities. The list should also include the money you owe to your business, including the security deposits, unpaid bills, rent, and much more. Examples of business assets include vehicles, real estate, business equipment, prepaid insurance premiums, and office furniture. When writing down your business assets, be sure that you make a detailed list. It should include the description or the category of the property. Aside from your tangible business property, you should also consider your intangible property.
If you have a commercial lease, contracts with suppliers and customers, intellectual property, remaining accounts receivable, and goodwill that your company has established, they can still be considered as your assets. When selling these assets, you have to keep copies of web listings and ads, the buyer, and the agreed amount. Having a complete record of your property and what you did to them will help you protect yourself from creditors who might eventually question your business asset liquidation. The documentation will also serve as your proof in case you want to file bankruptcy. You can also use the information you obtained for filing your tax returns.
Search for potential buyers of your business assets
Once everything has been written down in detail, the next thing you need to do is find potential buyers for all of your business assets. Be sure that you have not used your assets as collateral for a loan. You can sell both your tangible and intangible property. Intellectual property such as your trademarks, patents, and copyrights can be sold to your competitors. If you have a job or work in progress, product names, company name, or customer lists, you can also sell them to your prospective buyer. Some companies might be interested in buying your office furniture. One way to liquidate tangible assets, especially if you have a lot, is to hire estate sale professionals. They will take care of that entire aspect of the process for you.
Set aside your leased and secured assets
If you have taken out a loan and you have set aside your leased assets as collateral, you need to make sure that the creditor has permitted you to sell such assets. Selling your loan collateral before paying off your debt or loan is considered as a fraudulent act. You have to speak to your creditor, so you will know how you can handle the collateral if you are unable to repay your debt. You can either give the collateral to the creditor or sell it with the permission of the creditor. The proceeds will be given to the creditor. If you have a leased asset, it automatically belongs to the lessor. The option you have to is to return the property or transfer the lease contract to an interested party.
Request a refund of your prepaid insurance premiums
As part of being employed, your employees also have liability insurance premiums and compensation premiums, which need to be refunded if this is specified on your policy. Most businesses pay compensation premiums in advance based on the amount estimated on their payroll. Each year, the amount is adjusted, and any overpaid money will be refunded without problems. When it comes to requesting refunds for the liability insurance, you will need to check the policy terms first.
In liquidating your business assets, you have to seek help from a licensed professional to ensure that you are on the right track. When selling off your assets, make sure that you also pay the business broker and file bankruptcy, or repay the debt you owe to creditors.