How to Sell Equipment from my Closed Business
Do you suddenly find yourself asking the question how do I sell the equipment from my closed business? We know this can be a difficult time for you. The good news, since 1959 we have been working with business owners to sell equipment from their closed businesses. Here are some tips we found helpful over the years.
Decide What Equipment You Will Sell
Make a list of equipment that you will sell from your closed business. In some cases, it might be easier to make a list of equipment that you will not be selling. Types of equipment that have value and are commonly sold include:
- Specialized business equipment
- Food service equipment
- Woodworking equipment
- Machine shop equipment
- Fitness and gym equipment
- Electrical equipment
- Plumbing equipment
- Construction equipment
- Education and classroom equipment
- Building supplies and home decor
- Retail store fixtures
- Retail store shelving
- Cash register and POS systems
- Office furniture, art, and supplies
- Vehicles of all types
- Commercial real estate
Determine If You Owe Creditors For Your Business Equipment
If you owe money on your business equipment that you want to sell, a best practice will be to communicate with the creditor and discuss that you intend to sell the business equipment. The creditor will be entitled to the proceeds of the equipment up to the amount you owe them.
If your business equipment is worth less than what you owe them, your creditor may still allow you to sell the items with all the proceeds going to them. This is especially common if your loan for the business equipment was a Small Business Administration (SBA) loan that is guaranteed by the federal government. In that case, your creditor will have a few extra steps that will need to be done before the business equipment is sold.
Sell Your Business Equipment From Your Closed Business
Sell Directly to an Equipment Dealer
This option will typically give you the fastest access to cash, as a busy equipment dealer that specializes in your type of business equipment is often looking for equipment to sell in his/her storefront. This route does not often result in top dollar, as the dealer needs to buy the equipment low enough to resell at a profit.
Seller Directly to a Similar Business
This option generally will give you access to some of the highest prices. You will need to take the time to identify businesses that would use similar equipment as you. Once identified, you’ll need to reach out to those businesses and negotiate a sale to them. Oftentimes, this can be difficult as businesses typically don’t need large amounts of equipment. Also, this method sometimes results in selling the best pieces of equipment and leaving you with the least desirable pieces of equipment left to sell. Also, this process can sometimes be tedious and time-consuming.
Sell at Auction
Selling business equipment at an auction will generate one of the highest returns with minimal work on your part. However, this method does require some additional time (typically 10 to 14 days before anything sells), and some expenses (commissions, marketing, setup, and removal expenses are common depending on your situation). Done properly, an auction will generate fair market value on all your items in one event and provide you complete closure on the items you are selling. The good news, selling equipment from closed businesses is what we have specialized in doing since 1959.
Not ready? Learn more about selling with Grafe.