What is The Job of a Liquidator?
By Clifford Woods
For those who want to start their own liquidation business, you should know why liquidated products are sold at a low price and about the people selling them. A liquidator sells excess products or products that have to be repaired in some way.
Liquidators are able to get products from a wide assortment of sources which includes customer returns, slow-moving products, previous season’s designs, overstock, orders that have been canceled, and so on.
The liquidators’ primary market for these kinds of products is actually any person that is trying to find wholesale products to resell. Likely customers of a liquidation company may include auction website sellers, tiny thrift shop owners, Flea Market sellers, and businesses that export goods, etc.. Many liquidators will buy these kinds of products in big amounts and then resell to anybody wanting to purchase at below wholesale prices.
Needless to say, a liquidator's goal is to generate income so all products will be priced at the lowest possible price to that you get a deal and the liquidator makes money. Not every liquidator store they buy in a warehouse. Sometimes a liquidation business offers a particular inventory of products and when sold, ships the inventory directly from the manufacturer to the buyer.
What a Liquidator Does for Bankrupted Businesses
A liquidator is actually an educated accountant and an authorized liquidator who either works individually or through the court. In any event, it is their task to break down a company until it is no more. This means that they have to get rid of all the assets a company owned and pays off any outstanding debts and creditors.
Liquidation takes place whenever a company cannot financially operate any longer and is considered bankrupt.
It may also be liquidated whenever all the company directors would like to end the company and stop trading, whether or not they are financially stable. Once the liquidator is designated, they have all the powers of a company director as well as the powers of a liquidator, which involves allowing them to perform legal actions the company directors cannot do.
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After a company goes into the liquidation, it is the primary aim of the liquidator to end it. They aren't like an official receiver that has the job of saving a company; instead the liquidator closes the business once and for all.
The liquidator shuts down checking accounts that belong to the company, lays off all workers aside from crucial labor force required to aid in the liquidation process, which is especially important if the business is to carry on trading throughout the process.
About Creditors
The liquidator considers the statements of the secured creditors. Any funds raised are going to be paid to them before any other type of creditor.
On the other hand, if there is any money remaining after the secured, or favored, lenders have been compensated then the liquidator will disburse any leftover money among the unsecured creditors and investors evenly. Creditors might not get the entire amount of the initial debt they are owed, however they will get more than if the business did not liquidate.
Completing the Liquidation
The liquidator will finish the process only after they have taken care of all the problems and debts the company had. Despite the fact that there isn't any time limit for the liquidation process, it is assumed that the liquidator will end it as soon as possible once all affairs have been dealt with.
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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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