When money problems change the asset disposal plan
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If the business may be unable to meet its obligations, obtain qualified insolvency advice before making further asset-disposal commitments. Do not assume that selling equipment is an ordinary cash-raising decision simply because the assets are physically available.
For limited companies, GOV.UK's closure guidance states that creditors' interests take priority when the company is insolvent. The appropriate action depends on the facts. A solicitor or insolvency practitioner can advise on the situation; this article helps you prepare for that conversation.
Gather the facts without redesigning the transaction
Bring what is available and mark gaps. Waiting for a perfect spreadsheet should not delay seeking advice.
- The business identity and names of people currently making decisions.
- A current list of assets and their locations, with identifying photographs where useful.
- Purchase, lease, hire-purchase and other finance records, including agreements you do not fully understand.
- Information about customer-owned, borrowed or disputed items on the premises.
- Current cash and debt information requested by the adviser, kept through an appropriate confidential channel.
- Any existing sale instructions, offers, deposits, invoices or collection appointments.
- Premises notices and other deadlines affecting access or occupation.
- Details of proposed transfers to owners, relatives, connected businesses or other parties, for advice before action.
The purpose is disclosure and assessment. It is not to suggest which creditor to pay or which assets to move first.
Make existing commitments visible
An adviser needs to know if an auction catalogue is already live, a buyer has paid or a collection is booked. Record the stage accurately and supply the relevant agreement. 'We are selling the machinery' is too broad to show what can still be changed.
Use the financed-asset guide to locate ownership questions in the records. Do not assume an asset is available because it appears on an accounting register or because only a small balance remains payable.
If an agent is already appointed, explain that advice is being sought and ask how to record the current instruction pending that advice. Avoid privately promising a different buyer the same assets in the meantime.
Leave decisions with the appropriate professional
Record the questions you need answered: who may instruct a sale, what process is appropriate, which records must be preserved and what existing commitments require attention. Ask for the next steps and the person responsible for each one.
The adviser coordination sheet helps keep those answers connected to the site and sale team. For the wider facts of a sudden closure, use the unexpected-closure worksheet. Do not apply an ordinary solvent-closure plan unless your advisers confirm it fits the circumstances.
UK Auction Group can discuss practical asset information and disposal requirements through the authorised instruction route. Make the professional advice and authority clear before moving from information gathering to marketing or sale.
Explore the retirement and closure guides.
Sources
- UK Auction Group: business closure Checked
- GOV.UK: closing a limited company Checked
This guide gives general information. Equipment-specific, legal, tax and safety decisions may need a qualified adviser or competent specialist. The guides do not promise sale prices, fees or results.