Liquidating a small retail business

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.

Liquidation is just one business exit strategy option.

It is unlikely that there will be shareholders involved in a small business.

However, if there are shareholders, they are also entitled to the last bit of liquidated assets.

And, donating outdated equipment, furniture, and inventory to charity will earn you small business tax deductions.

When a business undergoes liquidation, you liquidate assets to pay off debt.

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.

When you intend to sell a car, you make it look its best so you get the most money for it.

Likewise, make sure all your assets look presentable.

Secured creditors are lenders with collateral, a security promised for loan repayment.

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