Can you guess how many years of technological progress humans will make in the twenty-first century?
According to inventor and author Ray Kurzweil, the answer is 20,000 years of progress by today’s standards—all squeezed into a span of 100 years.
Any businessman knows this creates a dilemma. As technology advances, old equipment and more must be properly destroyed.
Asset recovery explains what happens to those outdated files, information, and equipment from ages past.
Advancement doesn’t have to mean bankruptcy.
Want the latest tech without burning through your budget? Learn all about asset recovery in this article.
What Is Asset Recovery?
When businesses get rid of obsolete material, they understandably want to maximize the money they receive in the process and minimize the money spent.
The process that accomplishes this is asset recovery. It is sometimes referred to as “investment recovery” or “resource recovery.”
Keep in mind “assets” refer to any company property that aids in the business’s service.
Examples of assets that have reached their expiration date vary, but common ones include:
- Heavy equipment
When it is time to replace or destroy these assets, asset recovery allows businesses to do so with minimal costs.
How Does It Work?
There are three basic steps to the process:
These steps require planning and research, which is why companies often hire the assistance of specialists.
Identification involves separating assets so that businesses group unproductive items or material and productive ones differently.
To do this, professionals scrutinize production data to understand if equipment or material provides income for the company. They may also consider the item’s appreciating or depreciating value.
Factors like these allow experts to decide if businesses should discard, update or keep assets.
Next comes redeployment. In this stage, the material is recycled if at all possible.
This may involve taking spare parts from a machine to use in other models, transferring an item to a different department or sending something to another part of the company.
What items cannot be redeployed move to the third and final stage of the asset recovery process: disposition.
In this phase, officials dispose of assets that are no longer useful to the company. This might involve selling, destroying, donating or recycling assets.
Ideally, businesses receive capital during the disposition stage.
Asset recovery offers many benefits to businesses.
It allows companies to remain up-to-date with the world’s constantly-changing technology.
Furthermore, companies don’t have to suffer financial losses in order to meet today’s demands. Instead, they receive capital from unproductive assets that they use on new and more productive assets.
Finally, the help of an asset recovery specialist ensures any sensitive data isn’t compromised and all disposal regulations are met.
Do You Need Asset Recovery?
Asset recovery allows business leaders to continue offering their consumers excellent service, products, and efficiency at acceptable prices.
It also provides the springboard that gives companies opportunities to expand. Best of all, it’s created with the business in mind, meaning the process aims to decrease or eliminate costs when the time comes for an asset’s expiration.
Do you have assets that no longer offer value? If so, contact our company.
We offer asset recovery services that take the entire process of your shoulders—all with the goal of minimizing spending and maximizing returns.
Call today to speak to a specialist and be part of society’s technological revolution.