Liquidating a small business
As an entrepreneur, you need to have a plan in case you have to close your business.
Whether you are simply retiring or you have to close down your business for less than pleasant reasons, liquidating your business and equipment can be a large job.There might be a few reasons you decide to liquidate your business.If you have too many debts to pay and not enough money, you might need to liquidate your business.A 7(a) loan is a lender-issued loan that can be used by a small business for a variety of different purposes.A 504 loan typically involves a senior loan issued by a lender and a junior loan issued by a Certified Development Company (“CDC”) along with some contribution by the Borrower.An exit strategy is how you plan on selling your investment in your business.
Other exit strategies you might consider before liquidation are mergers, acquisitions, and Initial Public Offerings.
The Small Business Administration (SBA) suggests purchasing your leases if you only have a few more payments to make.
Paying $100 to purchase your lease and selling it for $1,000 to someone else is a smart business decision.
But even five months can be too long for owners dealing with a change in personal circumstances, a sudden turn of events in the marketplace or a new business opportunity that requires immediate action.
Strategies for a Quick Business Exit Typically, a small business owner will start to prepare for a sale months or even years before the desired exit date.
Once you've decided to go out of business and liquidate, it's important to value each item you are putting up for sale -- including the business equipment and fixtures -- and get the most you can before closing down. Contact an accountant and a lawyer before liquidating your business.