When people or businesses find themselves in a shortage of cash, they tend to liquidate their assets in an effort to fix their financial issues. The decision you will need to make when liquidating an asset is doing it quickly or doing it for the highest value. For the most part, if you liquidate an asset quickly, you will not get as much value for it.
If you need cash quick, the best assets to liquidate are stocks and bonds. These are by far the quickest assets to liquidate because they operate on an open market. You will have access to your cash within one to two business days when you liquidate these assets.
If you need quite a bit of cash, you can always set up an auction for all of your assets. This takes a lot of time to do though. Each asset requires a minimum bid price, as well as a description for each asset involved in the auction. You will also need to advertise the auction so you get enough people in attendance.
When a business has to close its doors, a going out of business sale is always the best way to liquidate your assets. Prior to setting up such a sale, you should check with the state of New York for any restrictions that might be put in place.
There are usually tax implications when liquidating assets so be sure to speak with your accountant so you are prepared ahead of time.
Do you have questions about asset liquidation in Long Island? An experienced bankruptcy law attorney will discuss your situation with you and help you find out the best liquidation options for you or your business.
Source: Chron, “Fastest Way to Liquidate Assets,” accessed Nov. 24, 2017