What is liquidating your assets
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.Secured creditors are lenders with collateral, a security promised for loan repayment.The collateral is different than the liquidated assets.
Before you can liquidate your business, you must first talk with your business’s lawyer and accountant.And, you need to tell your creditors beforehand that you will be pursuing liquidation.Your lawyer and accountant can help recommend how to sell your assets, and they will help you through the process.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.