What is Asset Recovery Service? How It Can Help Your Business

If your business owns assets, you need asset recovery at some point or another. Your assets are valuable as long as you use them.

But have you ever thought what happens to them at the end of their life span? What if the assets are not used? What if the customer owes you the assets and doesn’t pay for it on time?

Such concerns point towards the importance of asset recovery.

Asset recovery refers to the practice of using your unutilized or end of life assets so they can benefit your company’s bottom line. In other words, it is the way to make the most of the assets that are not useful anymore.

Asset recovery is generally used for the assets possessed by your business. It is also performed when your assets have been illegally or wrongfully taken.

No matter what you use asset recovery for, the goal is to increase the value of your unused assets, or simply put, to recover their value.

Understanding the Ingredients of Asset Recovery

Generally, asset recovery is comprised of the following three components. However, you have to use the one depending on your asset type and whether you are recovering assets internally or from someone else.

Idle Asset Identification:

Whether for tax, general accounting or other business purposes, it is important to identify your unpaid, unused or end-of-life assets. Otherwise, your idle assets can cost you more.

Well, your ideal assets can be anything ranging from property, equipment, land, non-capital or capital assets. Make sure to create a plan to label your assets to decide whether to divest or reuse them.

Redeployment:

Once you are done with your asset identification, you can determine how to use them to increase their value. Redeployment is the most feasible way of recovering assets. Not only it increases the asset value, but also eliminates the need for purchasing a new asset. This way, it saves time and money.

For example, you can use unused assets as replacement parts. This practice is common in both automotive and electronic industries as some parts have more life expectancy than others.

Disposition:

If the assets cannot be redeployed, there are many ways you can recover them. In disposition, you can dispose of; donate; recycle; sell or scrap the assets.

Selling or scrapping the assets can help you recover some of the costs of the asset. Giving it in donation or recycling it can come with tax benefits or other opportunities. However, disposing of an asset might not be that productive.

How Asset Recovery Can Increase Value to Your Business

Asset recovery can help you manage the assets that are not valuable to your company. With asset recovery, you have a “method” to manage unused assets and illegally-acquired assets. Otherwise, you might end up with a huge loss with everything you have invested.

Here are some key benefits of using asset recovery for your unproductive assets.

Accounting Benefits:

Unused assets on your inventory can also cost money. Getting them off your books can help balance your liabilities and assets.

Capital Benefits:

An unused asset won’t provide you with any value. Selling it can benefit your bottom line through asset recovery.

Tax Benefits:

Disposition might provide tax benefits. You can get tax benefits by donating or recycling assets.

While asset recovery can be handled internally, sometimes you need professional help. An asset recovery services can be useful, especially in the tough times such as bankruptcy proceedings, matrimonial disputes and embezzlement cases.

Asset recovery services mostly provided through investigation professionals and former law enforcement, are specialized and trained in private investigation and asset searches.

For more information feel free to contact us