Business Basics: Equipment You No Longer Need Is Still an Asset

Are you in possession of a personal or business equipment that you no longer need? It could be that the equipment is not working anymore. Or you may have bought a more advanced equipment to replace the old one. Your interests might have also shifted away from the old to a different equipment. Whatever the reason, you no longer need the equipment. So what should you do with it? Should you sell it at a throwaway price or just leave it to lie idle in some corner as no one will bother? Basically, should it still be an asset to you or just some valueless equipment? Continue reading to know why you shouldn’t see it as valueless at all. In fact, that equipment is still an asset, and with a good value. Get to know what you should do instead.

Auction the equipment

This will help reduce the costs you would have encountered if you’d decided to sell the equipment on your own. You will have been relieved of the advertising costs by involving a middle party help you in the sale. But there are different types and ways of auctioning your property. You may opt for reserved, minimum bid, or unreserved auctioning. Learn the difference here to know the option you will go for. Especially if you want to consider the price of selling equipment. There are various available platforms where you can get information about auctioning. Auctioning online at Equify is one of the options to dispose of your equipment.

Use the equipment as a collateral against a loan

A variety of finance and commercial institutions require collateral before assigning any amount of secured loan to you. If today you need to request some secured loan at these institutions, maybe to start another business or to acquire another equipment, it will be a great idea to present the old equipment as a collateral against the loan. But you will first have to understand how equipment collateral loans operate and their eligibility which is clearly listed by every institution and you have to go through and agree to the terms before being assigned the loan. Organizations like Asset Finance have clearly pointed out the terms and conditions you need to know. So you will know the range of the loan you are viable to get using the equipment. You may not be needing the equipment but there is something else you’re in need of. Lucky you, the equipment got your back.

Return the equipment for credit

A variety of Original Equipment Manufacturers (OEM) are against the idea of having their equipment once they are no longer in use to end up being disposed of in landfills. They instead offer to take them back from you when you do not need it anymore. You will be given credit value, replacement, repair (if the warrant is still active), and sometimes cash as a form of exchange from their “buy-back” solutions. But before receiving any of the compensations, you first have to contact the manufacturer to be given authority to return the equipment. This way, the equipment will have a second life cycle after return. You will find some information regarding equipment return here.

Loan it out

How about giving out the equipment on loan to another company or to an individual? Perhaps there must be an interested party somewhere. Just like you might have had to loan the equipment yourself to start your business, and you’ll probably need it again as you expand and technology advances, there’s one who needs that what you do not need at the moment. Loaning it out will not only release some space for you. But think of it as a booster to your finances. You no longer needed it but look at how it can still be useful. It works to boost the net value of your company or personal business. There are several platforms where you can find a party to loan it to and other platforms make it easier for you by loaning it out on your behalf for a small fee. Whether you will decide to loan it out for an hour, week, or days, you may have to consult a financial expert or association for information about loaning the equipment prior to loaning it out.

Reuse the equipment

Have you considered finding another use for the equipment? This is actually a good option especially if you were running a business company. Redeploying the equipment to another branch and to be used for another purpose will greatly save on costs of procurement. If the machine is still functioning but you’re not using it in your current state, probably you will appreciate when you use it somewhere else for a good reason. The best thing about this option is that when viewed from a social and environmental point, it has proven to be the best stewardship.

Prioritize the disposal

It will be advantageous to prioritize disposing of the equipment as soon as you do not need it. “But I see no big deal rushing to dispose of. After all, I do not need it new either.” Yes, you’re definitely right you don’t need it. But you have to remember this, the longer you delay disposing of the equipment, the higher the depreciation. You might be surprised to find the equipment has lost value yet it was just lying idle. Be efficient and quick when doing this. Good luck (do you even need it?)!

Conclusion

Up to this point, how many assets are in your possession which was on the verge of becoming valueless equipment to you? The same idle equipment can become very valuable assets to you. Talk about loaning it out, auctioning it, using it as a collateral against a loan, or finding another use for it. All of these options, and more, as a form of financial advantage to the company or personal business. Get enough information to help you make appropriate decision of what to do with the equipment. And in whatever decision you will prefer, make it quick to utilize the advantage early enough. Remember, old is gold. Voila!

John Andrew is the Founder and Publisher of Teens Mean Business & has been writing about small businesses since 2005.

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