Business Liquidation Key Terms

Learn business liquidation key terms to maximize sales on surplus inventory

By Christine Pollock

When a business wants to unload extraneous inventory, understanding business liquidation key terms smoothes the unloading process. It helps business owners negotiate with other businesses and potential clients in clear, concise terminology, so everyone knows what to expect in business dealings.

Knowing business liquidation key terms also opens a business owners' eyes to the variety of methods that one could employ to liquidate materials. The knowledge leads to savvy transactions in the business world.

Inventory

Inventory is the terminology used to define what's in stock in a particular store.
Try: National Barcode provides a definition for the term inventory. It divides the term into the different categories that apply to the term.

Liquidate

Sometimes parts of companies or full companies end their business dealings. When this happens, they distribute their assets and properties to other companies. In a liquidation process, the company ending its business redistributes inventory to other companies.
Try: PRLog.org highlights methods for detailing a plan to liquidate materials for optimal profit.

Appraisal

An appraisal is an assessment of something like stock, or inventory. It estimates the total value of the goods.
Try: AbleEstateSales offers free appraisals to businesses that plan on liquidating.

Surplus

Also called overstock, this term refers to an extra quantity of inventory than what's necessary. Liquidators often sell off surplus products at discounted prices to move inventory.
Try: Small Business Notes offers a detailed plan of action for business owners who want to liquidate their assets. It offers links to other sites that detail the steps and liquidation.

Business-to-business

Business-to-business, also called B2B, is an exchange of products between businesses as opposed to the exchange of products between consumers and businesses. Liquidators use this type of transaction to move excess inventory.
Try: TechTarget offers a detailed explanation of business-to-business transactions for Internet commerce. It defines the transactions and explains the benefits.

Liquidation auction

A liquidation auction, also called a surplus auction, is and event where a company or business rids itself of excess inventory by holding an auction, attempting to get the highest prices possible for the extraneous inventory.
Try: Government Liquidation is a fine example of an online marketplace used for the purpose of liquidating surplus government materials. It offers auction options for extraneous government inventory.