Rapid Liquidations buys consumer ready inventories from manufacturers, distributors, wholesalers and retailers. Buy retail ready merchandise below manufacture cost. We buy huge lots of retail ready merchandise to help those who store it make room for new goods. Distributors and retailers who work with us savings of up to 90% off of manufacturers costs.
Monday, April 28, 2014
Tuesday, April 22, 2014
How to Package Your Products for Shipping
How to Package Your Products for Shipping
By Clifford Woods
A few of the ideas below might seem intuitive, however if you go to any store you will see a lot of items they have in which designers did not follow any of the essential packaging suggestions below:
Tip #1: Don't Waste Any Space on Your Package
Do not completely focus on the exterior of the package. Consider everything as a chance to get in touch with your buyer.
Make use of the packaging label for advertising. Utilize the product packaging interior to support the messaging on the exterior, such as even more ways they are able to use your product for similar goods. Encourage clients to let others know about your services.
Tip #2: Make Sure Your Package Appeals to Your Niche
Colors, pictures, word choice, font, and everything about your packaging needs to be geared towards your target audience.
Whenever a potential consumer views your product, they need to instantly recognize your brand. If your target customer base is commercial companies, they will not be interested in with images of rural home life.
If your market is environment-friendly, emphasize the green advantages of your item and packaging. If you are marketing abroad, make certain you are very sensitive to cultural customs.
Tip #3: Include Directions for Convenience
Never try to make your customers think about how to open the product. Include things like unwrapping directions on the product packaging itself so a person understands just how to deal with your product and prevent injuring themselves along the way.
Tip #4: Advertise the Benefits of the Product
Do not presume that individuals will link your product with their needs.
Buyers do not purchase a product for its functions; they purchase a product for what it can do for them. Speak about how your product helps you to save time, improve their total well-being, provide superior protection, improve their productiveness, or respond to some other need they may have.
Tip #5: Make Use of Pictures When Possible
Making use of worldwide icons pictures is likely to make your product readily available to a broader marketplace.
For instance, if you are marketing within the United States, you may include English and Spanish copy on your product packaging; on the other hand if you want to focus on tourists or those with learning disabilities who cannot read then making use of pictures instead of words could also make it simpler to sell your product in international marketplaces.
The simpler you make it for individuals to be aware of what your product packaging says, the much more likely they are to purchase it.
Tip #6: Compare Your Product
If you have a product you want to submit to a retail store.
For example, visit a retail store and put your package on the shelf next to another. If it stands out, appears unique, and looks a lot better than the merchandise of your competitors, then you have a good packaged product.
Tip #7: Make Packaging Opening Pleasant
Your product packaging should involve the entire experience.
For example, Apple is a company that really does a great job of creating a product's packaging right down to the very last detail. The means of unpacking the product emphasizes the company's self-image and their consumers' experience prior to making use of the product itself.
If you include every one of these tips above in your packaging plan, you will be able to prepare yourself for success in your marketplace.
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Clifford Woods is the owner of Rapid-LiquidationsWe buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!
If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.
How to Determine If You Should Buy From a Wholesaler
How to Determine If You Should Buy From a Wholesaler
By Clifford Woods
In the case of liquidation sales, things are not necessarily as they seem, so you will have to keep an eye out for the things below anytime you are at a liquidation sale.
What is a Liquidation Sale? To begin with, liquidation sales are usually managed by a liquidator who purchases the inventory in declining stores and then resells it on their own. Doing away with the goods is really a supplementary goal, at least in the beginning.
The main objective of liquidators is, needless to say, to make all of the profit they can. Therefore, products are not necessarily listed to sell, though eventually after some time they will simply want to get rid of their current inventory which means you can snag it for a cheap price.
Know the Real Price: To be able to offer a noticeable price cut, liquidators actually increase costs above the manufacturer's suggested retail price before listing any discount rates. Therefore, despite having a 10% discount, you may find yourself having to pay a lot more for the product than you might have before the sale began.
Since sales usually run for a few months, the liquidator has enough time to target consumers who do not know any better and make huge profits by offering small discount rates on overpriced items. When they finally get right down to real discounts, the majority of anything that you really wanted in the first place is going to be long gone.
One more problem is that, since the store is not going to exist soon, all product sales are usually final. This means that, if you find that you have problems with your purchase, you will have to address the manufacturer instead of taking it back to the store.
Helpful Advice for Getting the Most Out of a Liquidation Sale: For anyone that is considering buying products from a liquidation sale, below is a list of a few guidelines to get the most out of your shopping experience:
- Use a Credit Card to Buy: This is especially true for goods that will be shipped. In the event that your goods never arrive, you are able to go through your card company to get your cash back.
- Watch Out for Extended Warranties: You need to be cautious about extended warranties. When it comes to liquidation sales, you need to be a lot more careful, as the guarantee might outlive the vendor. In many instances, it is probably best to just depend on the manufacturer's extended warranty, which is not affected by the merchant's shutting down.
- Do Not Go to a Sale for the Sake of It: It is easy to be caught in the thrill of a sale and make buys that you will later on regret. The issue here is that, as mentioned above, liquidation sales are usually final and you will not have a chance to re-think your choice and return the item.
- Check if You Have Gift Cards: Considering that the business is going out of business, time is running out for you to use your gift card. If you do not spend it before the liquidation sale comes to an end, your gift card is going to completely useless.
- Research: Although it is possible to get a good price, it is just as likely that you will lose money. If you know what you would like to purchase then there is absolutely no reason for not knowing just how much you can get the item for somewhere else. This is especially important for those who want to resell the items themselves.
Clifford Woods is the owner of Rapid-LiquidationsWe buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!
If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.
Factors to Remember When Purchasing Pallets of Returned Goods
Factors to Remember When Purchasing Pallets of Returned Goods
By Clifford WoodsStores regularly have products which are overstocked or returned. Since they detest totally wasting all of these goods that remain functional and have simply no problems, shops work with wholesale pallet businesses to get rid of what they cannot sell.
Watch Out for Scams: Consumers looking to purchase pallets of products can, sad to say, frequently end up getting ripped off. Quite often, the purchaser gets a pallet only to find that a large portion of the products are not able to be re-sold due to significant problems not mentioned by the seller.
Probably the most reliable way to separate the fraud businesses from genuine pallet organizations would be to look up the organization through the Better Business Bureau (BBB).
If you fail to accomplish that, which is often the situation for new businesses, make an effort to gather information through client reviews. Never purchase a pallet if you do not have a crystal clear understanding of the approval rate and the level of quality of customer service the pallet company provides.
Buy Directly From Pallet Companies: Pallet companies work by obtaining products from big retailers. The products might be overstocks, salvaged, or returned products that can all be repaired if damaged.
Merchants work on a regular basis with pallet companies simply because they continuously have to transfer unsellable products out of the store and warehouses to make room for new products.
As a result, sales executives for retail businesses normally have an index of pallet businesses they are doing business with often.
All these pallet companies have a good reputation for offering excellent service. If you discover products from a retailer you want to purchase on a pallet in bulk, find out which pallet companies the retailer use from the manager of the store and how to make contact with those businesses for pallet purchases. This is actually the easiest way to discover pallets for certain products.
Current Pallet Companies: Pallet organizations are located all over the United States. Good examples of these companies can include Via Trading, Genco, Bargain Report, and TDW Closeouts. Generally, these businesses purchase goods from top quality retail stores, then split the products into smaller groups and place them on pallets.
Of the businesses mentioned above, Via Trading is very niche-focused when it comes to categorization, so keep that in mind if you are a small company that wants to market niche products. A few businesses might require that you purchase at least one truckload of pallets to start, so make sure to check out the policies of each pallet company before you do business with them.
What to Look For: While searching for pallet companies, focus on companies within traveling distance. Pallets might weigh well over two hundred pounds, based on the products involved, which means that you will need to pay significant shipping fees if the organization is located far from where you live.
It is always a smart idea to purchase just a few pallets from a business in the beginning. This allows you to get an understanding of what the pallets provided by the company may be like.
Furthermore, great pallet businesses really should provide you with some type of return policy provided it is possible to get the pallet back to the business in the exact same condition it was in when shipped.
If you discover great products at a pallet company that does not provide this option, you will still want to work with them, however you should be a lot more mindful of whether or not the amount you buy satisfies the demand you might have, and you also need to be ready to take a loss in the event you get a pallet with an above average percentage of unusable products.
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Clifford Woods is the owner of Rapid-LiquidationsWe buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!
If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.
Friday, April 11, 2014
All About Resale Licenses and Why You Need One
All About Resale Licenses and Why You Need One
By Clifford Woods
A reseller's permit is necessary for US-based retailers to prevent paying sales tax on products you are likely to resell. To obtain a reseller's license, you must first sign up with your state tax division by obtaining a State Sales Tax ID number.
About Sales Taxes: A sales tax is billed on every sale of physical merchandise to potential buyers in your state. A number of states might also charge sales tax for a few services. Not every state imposes a sales tax. If your business is located in the states of Hawaii, Oregon, Delaware, Alaska, or New Hampshire, then a sales tax will not be used or can be applied only in some instances.
For every other dealer, a sales tax is an important factor to keep in mind. Sales tax has to be gathered by all. Generally speaking, you don't have to collect sales tax from purchasers who live outside the state you are in. You can get your state's sales tax rate from the state website.
It is vital that you do this since there are major differences between states. For example, a few states have one main rate that is applicable throughout the state while in other locations the sales tax rate differs between county lines.
How to Get Sales Tax Identification: You can get a sales tax identification certificate and reseller license at your state tax office. After you obtain your sales tax ID, the state will begin mailing you regular monthly or quarterly claims. The actual physical location of your company is what makes a difference to the regulators, not the place it was created.
Therefore, should you be running your company from a different state, like Florida, yet have created it in Georgia; you will end up getting the Florida rate for the sales tax from customers and pay these on to the tax office.
Wholesale Permits: If you are a citizen of the United States who is buying wholesale products from a wholesaler inside the country, then you will most likely have to have a resale certification or resellers license from the state where your company is physically located.
This permit will allow you to buy products at wholesale prices without having to pay sales tax. Additionally, it enables you to gather sales tax from your buyers. If you do not have a permit to resell goods, then you will need to pay sales tax on the products you purchase at wholesale prices and then additionally impose a sales tax.
In cases like this, you can include the sales tax you paid for as a deduction on your return; however it is a lot less difficult to simply present your certificate whenever you buy from a supplier.
The majority of wholesalers will request to see your sales tax ID or permit before they are sell you any merchandise at all. The reason being is that they are lawfully required to confirm if you are qualified to collect sales tax from the consumer.
What is a Use Tax? Another factor you might run into is a tax referred to as a 'use tax'. This type of tax is in position to try to discourage individuals from purchasing in states with reduced taxes compared to their very own.
Use tax ensures that if you buy goods in a different state, then you owe tax comparable to the total amount you would normally have paid for in your own state. It will affect you if you purchase products meant for resale and then wind up using them for your own personal benefit.
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Clifford Woods is the owner of Rapid-LiquidationsWe buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!
If you are interested, we also have a complete, easy-to-follow manual on how to get started in the Liquidations business yourself.
Advice to Consider When Starting Your Own Liquidation Business
Advice to Consider When Starting Your Own Liquidation Business
By Clifford Woods
Regardless of whether you are just considering, or you have made the decision that you want to begin running a wholesale company, there are numerous items that you need to invest a lot of time planning and investigating before you go ahead and purchase products for resale.
Good planning and research cannot just help you save a lot of problems at first, but may also mean the difference between an effective wholesale company compared to a financial disaster about to happen in the future.
Below is some advice that may help direct you along the way as you start planning for your company.
Figure Out Your Reasons for Starting a Wholesale Business
Wholesaling is a challenging industry and may call for a lot of up-front investments, storage space, logistics preparation, and good customer service. As the primary link between manufacturer and stores, you might find yourself working with tens of thousands of products having to be transported across the nation at any time.
Keep an Eye on Your Competitors
It would not be a good idea to get into a market where there already exists well-known, reputable wholesalers for a certain product. Merchants would like to know that there is a reliable source of products that satisfies their conditions and will not make changes to their wholesalers for just any product. Simply because you constructed the warehouse does not necessarily mean they are going to come.
Make use of your local Chamber of Commerce, the web, and even consult with retailers to discover exactly what wholesalers can be found in your town. If you would like focus on a particular product, get in touch with the manufacturer directly to find out who manages wholesaling for them in your area. There might not be one near where you live, or there might be more than one across the road.
Figure Out and Plan Your Finances
Wholesaling can call for a large amount of investment and expenses before you actually see a dollar of earnings. Make sure to look beyond the startup expenses too. Workers, taxes, insurance, and rentals are only some of the expenses you will have to consider as continuous costs.
Create a Good Business Plan
A reliable business plan is definitely the first step toward any successful business. You have to ensure that you have clearly planned out what you plan to do and how you would like to accomplish it. Not only will banking institutions require this for funding, but usually other companies you work with may wish to view it too. It needs to be the principles that you stick to every single day in your business to obtain the goals you have established.
While creating your business plan, it is usually a good idea to employ a professional consultant to help. An excellent source that will help you find such professionals in your town with the required skills and record is the Small Business Administration (SBA) government website.
Do All Necessary Paperwork
As a wholesaler you will find that you must pay taxes along with other fees to your state as well as the government. One exception is that you are going to be provided tax-exempt rank for the merchandise you are relocating between the manufacturer and additional merchants. This is often a tricky practice and is dealt with by the state.
Once again, it would be best to make use of your state taxing expert in addition to the local Chambers of Commerce. Just one wrong mistake when it comes to important paperwork can bring about a ton of charges and fees that you wouldn't have to deal with otherwise.
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Clifford Woods is the owner of Rapid-Liquidations
We buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!
If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.
Monday, April 7, 2014
A Quick Look at Importing Wholesale Products
A Quick Look at Importing Wholesale Products
By Clifford Woods
The fundamental principle of business is "supply and demand."
What this means is that you make money by providing a product or service that is sought after while there is an insufficient supply of such product and or services.Usually, we have found that it is nearly impossible to produce such a desire in one day if you do not have a multi-million dollar advertising team working with you. As an alternative, importing from abroad and sourcing items for an affordable cost and then reselling them for more than you bought it for, works best.
The Ease of Importing: For those who have never thought of importing and think that importing is extremely complicated and high-risk, then you will be very happy to know that this is far from the truth.
It is possible to quickly discover ways to import products and make the earnings you've imagined. You can find out the best strategies of discovering providers in foreign countries, importing goods, and selling them all for a substantial income.
You can also do all of this from your own house. Importing is not hard, however it really does require devoted research and a determination to learn from errors. Despite having the very best advice on the planet, you will still wish you had done something differently the very first time you give it a chance.
How to Find a Good Product: You might want to either look for a product that is uncommon in your country and therefore much sought after, or, an item that is available where you reside and extremely well-liked and that you can source extremely cheaply from abroad and offer it on auction web sites or your very own online shop for a low-priced compared to somewhere else.
To locate a high demand item, you first have to raise your awareness of growing trends and niche marketplaces. In order to make money, you should only have to have a reasonably well-liked product on condition that it has the possibility of being marked up 50 to 100%; then it may be successful.
As an alternative, niche markets are what you need to be focusing on. However, you need to be sure to steer clear of designer products no matter what.
Why You Should Stay Away from Designer Products
One type of product that is highly recommended against is designer products. Generally speaking, designers get their items produced in France or Italy to make sure they are made in outstanding quality and they also usually eliminate excess products instead of sell them at wholesale prices.
In addition, if you are found importing phony designer products, you may deal with serious fees and penalties. These types of goods are often greatly over-subscribed anyway.
How to Import: Let's take a glance at the basic steps you will follow to import products to sell:
Step #1: Research. Researching the market is very important. You have to make sure that the products you import will sell otherwise you will be throwing money away.
Step #2: Find providers. The web is an excellent method of discovering excellent suppliers; nevertheless it is also filled with deceptive sites. Just take time and care about authenticating providers that you find through basic web searches.
Step #3: Place the order, arrange shipping, and make payments. Additionally, you will have to speak with a broker to ensure you fill in the right forms.
Step #4: Get the merchandise, possibly paying a customs payment if necessary.---
Clifford Woods is the owner of Rapid-Liquidations
We buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!
We also have a complete, easy-to-follow manual on how to get started in this business yourself.
Get off the corporate hamster wheel that’s making someone else rich, and Start creating your own wealth, NOW!
Wednesday, March 19, 2014
Get THE MANUAL on Buying and Selling Warehouse Overstock & Retail Ready Consumer Inventories
Get THE MANUAL on Buying and Selling Warehouse Overstock & Retail Ready Consumer Inventories
Start Your Own Business!
Learn How to Buy Warehouse Overstock & Retail Ready Consumer Inventories
Incredibly Low Start Up Costs
We'll teach you:
- Who to call, what to say and how to make incredible deals that will make you fair, large profits every time.
- How this same type of business model makes retail outlets like Dollar General, Dollar Store, Ross, and Home Goods billions of dollars a year.
- How to sell your retail ready inventories, who to sell them to, and how to negotiate the selling price so that EVERYONE feels like a winner.
Don't wait another minute!
Get off the corporate hamster wheel that’s making someone else rich, and Start creating your own wealth, NOW!
What Liquidation Means for a Business
What Liquidation Means for a Business
By Clifford Woods
Throughout the liquidation process, the assets of the financially troubled business are sold and the proceeds are utilized to repay as many investors as possible. Even though the exact steps taken will change according to the type of liquidation, the event usually involves the sale of all the company's real estate and products, followed by the complete dissolution and closing of the organization.
Quite simply, whether the liquidation is voluntary or compulsory, the outcome will be the same. Creditors are compensated as much as possible and the company will no longer exist. Those who want to run their own liquidation business will get the best price for the products by contacting businesses that are liquidating and must get rid of their products.
In most cases, a business just simply needs to get rid of excess merchandise and will just need to liquidate a certain product line. In the consumer product liquidation business, go after retail-ready products only.
The Mandatory Liquidation of a Business: In a mandatory liquidation, an appointed individual creates a liquidation petition to the court to get the bankrupt company liquidated in an effort to recover funds to pay as much debt as possible. The petitioning person is often an Official Receiver, creditor, Secretary of State, or shareholder.
The directors of the financially troubled company may also be legally file a petition to close the company and
pay off debts, though this is typically dealt with through a voluntary liquidation instead.
Following the compulsory liquidation, the procedure for selling the company's resources begins, and all lawsuits the company was involved with typically dissolves. Basically, any legal actions taken by investors or vendors are considered void after the liquidation has started.
The Voluntary Liquidation of a Business: The procedure for voluntary liquidation is normally less stressful since the whole procedure is thought-out and the company directors' gain access to the assistance and guidance of an insolvency specialist throughout the liquidation.
Provided that the necessary information can be confirmed to show the liquidation will offer the best outcome for the company's investors, then approaching a professional to liquidate the company is rather simple.
In the event that the bankruptcy specialist finds that the company's' directors are wanting to liquidate their company regardless of the fact that there are far better options available, they might refuse to agree to the consultation. In that case the insolvency practitioner would recommend better alternatives.
Why You Would Want to Liquidate Voluntarily: Whenever a company is involved with an excessive amount of debt, it might be time for them to accept that liquidation may be the only move to make. Postponing the procedure is only going to result in even more company debts, causing you to be held personally responsible.
Despite the fact that directors are not typically held liable for the debts of a minimal company, you are able to be charged significant fines and are ordered to pay certain debts if the court finds you guilty of wrongful buying and selling. This is a likely outcome if you continue to keep trading while insolvent without carrying out your responsibilities as a director.
By voluntarily employing an experienced insolvency specialist to go forward and handle the process, you can keep away from the majority of the hassles and headaches caused by being wound up and forced into a mandatory liquidation by investors.
If you are a liquidation business owner that buys and sells closeout products, businesses on the verge of liquidating will be more inclined to sell you their products are a very reasonable price.
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We buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!
If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.
What is Voluntary Liquidation?
What is Voluntary Liquidation?
By Clifford Woods.jpg "What is Voluntary Liquidation?")
A creditor that has not been compensated for an order, and if the business continues to be unable to pay its debts completely, then the organization is liquidated, the assets sold off, and lenders paid for from the profits.
On the other hand, voluntary liquidation is another solution for many companies. With voluntary liquidation, it is the company that makes the decision to disband itself, and appoints a bankruptcy specialist as the liquidator.
The organization will stop its trade and the assets will be sold. When it comes to a retailer, it is vital that you sell off your stocks first. The proceeds can be used to pay off the expenses of the liquidation and then creditors; investors are left until last, and only get reimbursed if all creditors have been compensated first.
The Two Kinds of Voluntary Liquidation: There are two sorts of voluntary liquidation; creditors’ voluntary liquidation and members’ voluntary liquidation. A members’ voluntary liquidation takes place whenever there are plenty of assets to pay for all of the debts. The directors need to make a declaration of solvency for this kind of voluntary liquidation in order to be made use of.
A creditors’ voluntary liquidation, however, can only be done after a creditors’ conference is held. It is an extremely popular system for shutting down a business. The creditors might cast their vote by poll and can designate a liquidator or create a panel to keep track of the entire process.
What the Director Does: As soon as the liquidation process has started, the directors pass management of the business to the liquidator. They have to ensure that the liquidator knows how to recognize the assets and debts, as well as provide information on the company’s relationships and connections.
For example, they are going to have to show the liquidator just how the accounting system functions and might also have to produce title deeds for the building. Directors who would like to liquidate a company and want to continue in the exact same line of merchandise should remember that there are very tight rules about making use of the same company name.
‘Passing off’ is a criminal offense that indicates that the directors aim was to confuse customers or providers into thinking that they are working with the previous company.
It is occasionally possible to continue to work with the old name, however the liquidator must agree to this fact, and it might be required to gain a court judgment permitting it. Directors must also remember that any tax losses that have built up in the company are going to be lost when it comes to liquidation, whether it is a forced or voluntary liquidation.
The Advantages of Voluntary Liquidation: Liquidation is the final choice for the majority of businesses and is usually only considered after other available alternatives have been unsuccessful.
On the other hand, it is certainly worth spending money on liquidation instead of simply stopping trade and ruining the company.
The choice to go into voluntary liquidation can protect the company directors from any allegations of wrongful investing, and guarantees that the company is correctly shut down; protecting it from any additional claims after the due process has been followed.
Voluntary liquidation is also a technique for dealing with shareholder conflicts. It may be useful as a method of dealing with the situation in a family business in which the children do not wish to take over the business and a sale of the business is not possible.
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We buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!
If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.
What Happens When Mutual Fund Are Shut Down
What Happens When Mutual Fund Are Shut Down
By Clifford Woods
A mutual fund is a type of professionally managed collective investment scheme that pools money from many investors to purchase securities.
Mutual fund liquidations, also called complete closures, are in no way a good thing. A liquidation of mutual funds calls for the selling of every one of a company's assets.
After their assets are sold, the funds received by selling them are handed out to the shareholders of the fund. In the best scenario possible, this means that shareholders must sell during a time that they have no control over. A bad case of mutual fund liquidations involves the investors experiencing a loss and pay taxes on top of that, which is horrible publicity for the people who ran the company.
Selling at a Loss: Liquidations usually take place following a decline in the fund's worth. The result of this is that shareholders who purchased when the fund was higher priced, has to sell it at a decreased price.
For shareholders, this ensures that even though the stock might have been bought by the fund well before several shareholders purchased it, tax liability for these types of gains is not handed down to investors until the inventory is sold off and enough profits are made to be able to pay into present investors' accounts. This happens as a result of the mutual possession factor of mutual funds.
For that reason, in the event the fund is liquidated, the shareholder does not only sell the account for under the selling price, but additionally will pay tax on capital profits that the shareholder did not even reap the benefits of.
Why Funds are Liquidated: Funds have to be liquidated for all sorts of reasons, with bad performance ranking as one of the major factors. Bad performance minimizes the flow of resources due to the fact that shareholders will likely not want to buy into a fund that is on the decline.
Additionally, it reduces the mutual fund's history which investors look at to see how often the fund rises compared to its drop rate. In the event a company has six funds with five of them performing effectively, it would be a wise idea to shut down the declining fund in order to improve the company's overall track record.
If shareholders are taking a loss, the fund will probably remain open provided that the fund can be managed in a profitable way, however when the business is overwhelmed by the declining fund then it is removed. All things considered, fund businesses aim to generate revenue.
Why You Should Opt Out Early: You will find that there are various techniques for different funds. If you are committed to a mutual fund with indications of a decline, you should opt out quickly if possible. Whenever all shareholders would like to sell a specific fund at one time, the selling tension is likely to reduce the fund's selling price.
Leaving earlier instead of later on will help you get a much better price for your stocks and save as much of your spending as you possibly can. If you happen to be invested in a fund that you are locked into then consider the fundamental resources. If the fund seems to have reached its best, sell it in order to make the most out of your investment.
Closing the Mutual Fund: It is not uncommon for a mutual fund to close, especially when a business is liquidated. They occur on a regular basis in the world of business, so it is important to keep a close watch on the funds you invest in.
It is possible to reduce the likelihood of these situations by purchasing funds with a long successful track record and by carefully keeping track of your exposure to niche merchandise.
Whenever mutual fund liquidation takes place, it does not necessarily mean that you have lost all of your money. Remember to take the proper steps mentioned above, study the market, and sell off your assets in order to keep your investment objectives on the right track.
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We buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!
If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.
The Process for Compulsory Liquidations
The Process for Compulsory Liquidations
By Clifford Woods
Compulsory liquidation is a process that must be done when a company is being closed down due to bankruptcy.
Bankruptcy of a business is usually demonstrated by the failure of a company to pay for people and organizations that the business is in debt to.Compulsory liquidation, also referred to as a "winding up," is generally guided by a lender who is buying the business for money. The very first official step of a compulsory liquidation is the introduction of a winding up case by a dis-satisfied creditor.
About the Official Receiver: An official receiver, abbreviated to OR, deals with the initial phases of the compulsory liquidation. As a representative of the business, you need to know its budget and whether or not any lenders are pushing for payment by court notices or letters. These types of request may result in a petition to liquidate the business.
Whenever a liquidation request is carried out, the court will inform the OR, who is going to then send out notice of the payment request to the company directors. In some instances, the OR will have to interview you at least one time.
Termination of Company Director: During the liquidation process you will not have any say in the company when it comes to purchases, property, and resources. All of your abilities as a company director would be no more and you are no longer considered a representative of the company.
This also means that you, as the company director, would not take part in the matters of the business on a daily basis anymore. On the other hand, your tasks and obligations as a company director will still be in effect.
You might, for example, be asked to support the official receiver in getting rid of the company's assets.
For anyone who is a worker of the business, you will be laid off as soon as the liquidation process begins. The exact details are different for every business, so you will be informed by the OR about how exactly to claim for any uncompensated income or various other monies due to you as a worker.
You should never use any of the business' resources to make repayments to lenders or for your own personal use and advantage.
Working with the Official Receiver: It is important that you provide all of the details about the company and work together with the OR. If you do not cooperate with the OR, then you may have to appear in court to provide the details they need. If you make it an easy time for the OR, then you will be able to liquidate without any problems and start fresh the next time around.
Also, if you avoid a court order, there will be a warrant out for your arrest, which of course is horrible for publicity. Needless to say, how you work with the OR decides if you are able to act as the company director until the end.
Paying Off Company Debts: You might be instructed to make contributions to the business' resources if you did not use the company funds properly or if your business has dealt fraudulently. For anyone who is a shareholder of the business, you could be requested to make a payment for any shares which have not been completely paid for.
In the event that you, or anyone else, have secured any of the business' debts, this means you have consented to pay for the debt if the business is unable to. Whenever a lender becomes aware of the liquidation, you might be requested to make total payment depending on the conditions you agreed with when you became a shareholder.
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We buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!
If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.
The Difference between Auction Sales and Liquidation Sales
The Difference between Auction Sales and Liquidation Sales
By Clifford Woods
Liquidation and auction sales are used mainly by stores wanting to get rid of excess merchandize and get as much money for them as possible.
Knowing the difference between these two kinds of sales can certainly help one make the right decision if a company is confronted with the need to sell property or equipment.
In the following paragraphs we’ll go over the differences between auction sales and liquidation sales.
What Are Auction Sales?
Auctions are known as the opposite of liquidation sales because they are very fast; from start to finish.
The advantages of auction sales include:
- Prospective buyer can drive price ranges up.
- The Internet can attract bidders from around the globe.
- Auctions often occur when an organization has excess products they want to get rid of.
- Auction sales are fast from beginning to end. An auction deal involves the setting up of the equipment, the auctioning process, and the cleanup. All of this may take no more than ninety days.
About Liquidations Sales: Liquidation sale is the procedure for marketing the assets of a company in an organized manner over an extended length of time to achieve greater values that are nearer to retail price.
Liquidation sales are just like store closing sales in that a special corporation might come into a store to sell the rest of the extra inventory. They are usually lengthier sale processes, in which products are sold throughout weeks, months, and even several years.
Industrial liquidation sales usually involve the retailers reviewing offers and discussing selling prices.
The primary benefits of organized liquidations include the following:
- Extended selling time. This allows sellers to have plenty of time to find the best buyer for their products, which could often mean that they will sell for higher prices. Though in most cases they will settle for less in order to get rid of the product right away.
- Discussion between the seller and buyer determines what an item is sold for.
- Works more effectively for more customized or unique products. Often there are minimal buyers for such products; liquidation sales provide sellers with the time to locate buyers.
- The main advantage is the time frame: more time to carry out the sale means that there is more time to find the perfect buyers. For this reason, if you are a buyer you should provide the companies in your area with your personal information so that they come to you whenever there is a liquidation going on.
Liquidation sales are best for buyers since they will be able to grab merchandise for only a fraction of the cost they would get it for at an auction. After most of the items have been sold through the liquidation process, equipment and workplaces devices are often sold at an auction.
It is an effective way to sell off resources from a factory once most of the items have been bought. Both kinds of sales work effectively to help restore assets. For buyers, a liquidation sale would be the best bet when it comes to making money since an auction might drive the price way past the amount you are willing to pay.
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We buy complete inventories of unwanted or discontinued consumer merchandise for cash and sell complete inventories of consumer merchandise at about 15 to 20% of retails prices!
If you are interested, we also have a complete, easy-to-follow manual on how to get started in this business yourself.
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