What is liquidating your assets

Most small businesses don't have stocks and bonds on their balance, but if yours does, these assets are the quickest to liquidate. Converting these assets to cash takes less than a day or so.

Some financing companies will buy your accounts receivable assets.

You may want to consider liquidating any assets you have and using that money to help pay down your debts.

The basic definition of an asset is anything that can be sold or converted into cash.

Turning assets into cash is typically done in order to pay off a variety of debts, depending on investments made into the business by creditors, or loans taken out in growing the business, for example.

Liquidating leads to dissolving the company, and bringing all activity to a close.

Do not forget to include records on warranties as well as repair and maintenance history.

If you've decided to close your small business and liquidate all the assets, you have a number of choices..boxy-content a.term-action, button.term-action a.term-action:hover, button.term-action:hover .term-action-bg .term-uex .term-cite .term-fc .term-edit .boxy-dflt-hder .definition .definition a .definition h2 .example, .highlight-term a.round-btn, a.round-btn.selected:hover a.round-btn:hover, a.round-btn.selected .social-icon a.round-btn .social-icon a.round-btn:hover a.round-btn .fa-facebook a.round-btn .fa-twitter a.round-btn .fa-google-plus .rotate a a.up:hover, selected, a.down:hover, selected, .vote-status .adjacent-term .adjacent-term:hover .adjacent-term .past-tod .past-tod:hover .tod-term .tod-date .tip-content .tooltip-inner .term-tool-action-block .term-link-embed-content .term-fc-options .term-fc-options li .term-fc-options li a .checkmark .quiz-option .quiz-option-bullet .finger-button.quiz-option:hover .definition-number .wd-75 .wd-20 .left-block-terms .left-block-terms .left-block-terms li .no-padding .no-padding-left .no-padding-right .boxy-spacing @media (min-width: 768px) @media (max-width: 768px) @media print { a:link:after, a:visited:after nav, .term-action, #wfi-ad-slot-leaderboard, .wfi-slot, #related-articles, .pop-quiz, #right-block, .In an unexpected cash deficit position, small business owners sometimes find it necessary to liquidate a portion of their assets as opposed to their entire business.As a business strategy, it is important that you know when and how to convert assets into cash.While liquidating assets is an essential part of bankruptcy procedures, companies also use liquidation as a means to free up cash, even in the absence of financial hardship.