Sometimes financial difficulties are short-term events for businesses. If your company is experiencing some cash-flow issues or other financial problems that you think are short-term, you may consider a liquidation auction instead of filing for bankruptcy. By liquidating some assets, you may be able to bridge the gap in negative cash flow situations.
This is an especially good strategy if you have inventory you can’t resell. For example, customer returns, damaged goods and surpluses may be prime asset candidates to bring in some extra needed cash. Because of the recent economic challenges many businesses have faced, reputable and experienced auction houses are specializing in liquidation auctions to help businesses get the most money from their inventory.
Improving the Bottom Line by Selling Unneeded Assets
Liquidation auctions are a great way for your business to earn extra profit. Targeting inventory you can’t sell as indicated above, or just have too much of, can help you pad your finances. You can also auction other assets used in your business that you no longer need. Old office equipment and furniture are prime examples.
Whatever your reason for conducting an auction, make sure you understand how to achieve the best results. Finding the right auction service is an important step. But, you also have to look at your particular situation and evaluate your financial statements. You have to know what you paid for these items so you can make sure they don’t sell for less at auction. In most cases, it wouldn’t make sense to lose money.
Liquidation auctions are great opportunities for both sellers and buyers. Businesses can earn extra cash, stay out of bankruptcy or satisfy creditors before a closure. Buyers can often get a wide variety of name brand products at below retail prices. And, there’s nothing better than a win-win situation!