Liquidating working capital
Alternatively, the business owner could choose to sell a business asset that’s not essential to the running of the company to provide an injection of working capital so it can continue to trade.
The act of selling that asset and turning it into cash is called ‘liquidating’ the asset. it is unable to pay its debts when they become due, it is legally obliged to act in the best interests of its creditors (parties it owes money to).
the ability to convert the asset to cash) and the factors that may impair that conversion.We’ll explain your options and make sure you understand the implications of each procedure for you and your business.Get in touch for your free, no-obligation consultation today.If there are any creditors to repay then they will receive their funds first and the rest of the money will be distributed among the members (shareholders).Whether you’d like to know more about liquidating assets or want to discuss the liquidation process in more detail, we are on hand to help.