The Three Types of Liquidation

At Machinery Network Auctions, we do more than just auctions. In some cases, liquidations can work out better for the buyer than an auction because they can buy them at a lower cost than what’s possible at regular heavy equipment auctions. There are several different types of liquidations, and we have broken them out to make it easier to understand which is which.

·         Orderly Liquidation – These types of liquidations are the opposite of a forced sale, instead they are sometimes referred to as an orderly sale. This is when assets are sold on an open market without pressure to sell them as quickly as possible, and for whatever price is offered for them.

·         End User Liquidation – This type of liquidation is usually dealing with winning bidders of government equipment when they liquidate some of their machinery assets. It is usually accompanied by a shipping document letting them know where it’s going.

·         Bank Liquidation – This is the most common form of liquidation, when a business either goes bankrupt or the company no longer exists, the assets are sold off and the proceeds go back to the creditors that initially loaned them the money.

For any further questions you may have on liquidations, feel free to send us an email at info@machinerynetworkauctions.com and we’d be happy to help!