Convert business assets into cash is basically done by reviewing your fixed assets register to find which business asset can turn into cash.
Fixed Assets Register
Fixed assets register is a summary of all assets owned by your company. It should contain information such as the asset description, date of purchase, value of the assets and economic useful life of each asset.
To begin with, review your company’s fixed assets register regularly to identify surplus or idle assets. At the same time, you can also evaluate the condition of your physical asset and update its value to market value.
Convert business assets into cash
There are many ways you can turn your assets into cash.
- Sell the surplus assets. This includes land and buildings, plant and machinery, motor vehicles that you no longer need.
- Consider selling an asset where you can subcontract the production. For example, subcontracting out your printing process, your in-house printers would become surplus. Do this only if it is more cost-effective and efficient for your business going forward.
- Sale and leaseback to get extra cash for the equipment you already owned.
- Hire out underutilized of plant and machinery capacity.
- Sublet vacant factory and rent out vacant office space.
- Disposed of separable and sale-able investments such as shares, subsidiaries or any parts of the business like a branch if they no longer serve your core business.
- Sell idle equipment lying around in the factory or unused office furniture. The chances of the idle business assets being re-used are very small. Especially if they are stored in the warehouse or a storage room. This is because people often forgot about them.
Cash is king. It is the lifeblood of your business. The extra money always handy it can be used to pay Companies House when filing your confirmation statement and so on.