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3 Ways To Generate More Cash From Your Surplus Inventory

Surplus aircraft part inventory is wasteful.

It locks precious money on an inventory shelf until your maintenance operation consumes it. Over the years, for many different reasons, inventory piles up and leaves you with potentially millions of dollars in trapped capital.

The biggest desire for operations is to generate cash—now.

Liquidity never comes from a bank.

Some operations prefer to use their inventories as loan collateral.

A loan shifts the problem to a different section of the balance sheet and doesn't provide true liquidity. Liquidity never comes from a bank—banks don't buy or sell inventory.

To generate cash from your aircraft part surplus inventory, you need to sell it.

Generate cash from your surplus aircraft part inventory.

1. Bulk sale.

If you want quick cash, selling your entire surplus inventory is the best option.

But beware, buyers won't offer you fair market value for your inventory. They'll acquire your assets at a lower percentage of fair market value as they don't want to add too much risk to their balance sheet.

Selling your surplus will maximize near-term cash at the expense of longer-term returns.

2. Consignment.

If you want to maximize returns, consigning your inventory is worth consideration.

Your consignment partner is incentivized to sell your assets for a higher percentage of fair market value. They do all the work necessary to sell your assets while you get paid on a pre-defined payment schedule.

Consignments provide a higher return over a longer period.

3. A mixed approach.

We prefer to take an approach that utilizes the best of both worlds.

Our material partners receive a cash payment in advance while we sell their assets, maximizing their returns. Every situation is different, but a mixed approach is worth consideration to maximize the returns from the sale of your surplus aircraft material.

Do you have surplus?

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