If you want to start your very own liquidation business, you should know first why liquidated products are sold at affordable prices as well know something about the sellers behind these products.
In a quick sense, liquidators buy from suppliers selling their excess products, repair them if necessary and offer them for sale at a discounted price and gain profit from it.
Liquidators not only get their products from a single source but from various suppliers. Among the things being bought by a liquidator are sales returns, products that are not selling well, cancelled orders and over stock. Leftover seasonal products are also included.
Now that we know where liquidators get their products from, let’s move on to knowing their buyers. Liquidators actually sell to anyone who is into reselling wholesale products. Among these buyers are the small to medium thrift shop owners, online auction sellers, export businesses, flea market sellers and many others.
The main goal of a liquidator is to be able to gain profit from buying excess products in bulk, being able to sell them to anyone willing to buy it at a price lower than the market price.
Liquidators also sometimes choose to act as middlemen offering only a specific set or inventory of products. Once a buyer is found, the liquidator is the one responsible for shipping the products from the supplier to the consumer.
Liquidators are also a big help to businesses undergoing bankruptcy, this is specifically called bankruptcy liquidation. When a business reaches the point where they don’t have the financial means to continue operating, it is then that liquidation takes place. However, there are other instances where a business is liquidated not because of financial issues but because the company’s board of directors just chooses to end it.
A liquidator can also act as an accountant who can work in accordance with courts or independently. When a business is liquidated, they help by making sure that the assets of the company being liquidated are sold and the proceeds are used to pay off debts. They also see to it that secured creditors are paid first before the unsecured creditors.
When talking about what liquidators can do, they can actually perform specific legal actions that company directors themselves are not able to perform. This is because along with the innate power that a liquidator already has, they also are equipped with the power of a company director.
If a business is liquidated, it is the liquidator’s role to help put an end to it. It is not their goal to save the business and help it to operate again but to help the business close down altogether. It can include closing all the company’s checking account to as far as laying off workers. If the company chooses to continue business while undergoing liquidation, then the liquidator’s role is to also oversee or manage the workers needed in carrying it out.
The liquidation process does not actually end if all assets are already sold but when all debts are paid off. No particular time is set to finish the liquidation process; it just ends when all issues connected to the process of liquidation are resolved.