6 Ways You Can Protect Your Company's Assets

As a company owner, you understand your assets' importance to your business and their crucial role. If anything, your assets are the essential tools for keeping your business running and in a stable state. Making a profit and leaving it at that is not enough; you have to dig into how and methods you can apply to ensure your assets are well protected from lawsuits and claims. By protecting your company's assets, you have to know every detail your business is composed of, what makes it unique from your competitors, the business model, and IP. The following are ways you can apply to protect your company's assets.

1. Use Proper Contracts and Procedures

One of the easiest and most common ways creditors use to attack your company is when they realize you have acted fraudulently or negligently in pursuit of protecting your company's assets. To avoid such mistakes, ensure you have the proper lease agreements, place your property titles in the company's name and hire people through the legal channel to help in asset protection.

 Lawsuits are strict and look at any loophole that may lead to you losing your company assets. For this reason, ensure you use only licensed, bonded professionals who are insured to help in your business. They include legal tax advisers, contractors, and repairmen.

2. Best-Asset Protection Vehicles

One of the common ways of protecting your company's assets is using special purpose vehicles to help protect some of your assets. A special purpose vehicle is considered a legal entity invented for a limited purpose. These vehicles are commonly used because they are free from pre-existing debts and are not part of the parties that set them up for insolvency, tax, and accountancy.

The benefits of using a special purpose vehicle include:

● They offer tax relief on mortgage interest

● Rapidly expand your company's portfolio

● Act as means of ownership transfer to help reduce inheritance tax

● There is increased credibility and limited liability

3. Purchase the Right Business Insurance

Choosing the right insurance for your business is a big step toward ensuring your company assets are well protected. You run lower risks of losing any of the available assets. Insurance is a part of the startup budget when setting up the company hence plays a crucial role in ensuring your company operates according to the law.

 While choosing insurance, ensure you also settle for the right policies as there are different types of insurances available depending on what you want to insure.

4. Take Measures to Prevent Theft or Loss

To prevent loss or theft, you must apply constant diligence that will safeguard your asset from ill-minded people and opportunists. These measures include hiring specialized security teams to monitor high-value assets and your inventory all day. If hiring internal security is expensive to your business, you can consider opting for a security firm.

 

Security cameras in your company premises also contribute to protecting your assets and making sure all events on the company site are recorded and help provide proof of any wrongdoing committed.

5. Track Your Assets and Keep Proper Documentation

Any company or financial organization should ensure they have a record of what they have in their possession ranging from cars, equipment, and total amount in operation. Proper documentation of your assets keeps you in the know and makes it easy for you to notice if any of them is mishandled or lost to fraudsters or lawsuits.

 

Once you have a record, ensure you track your assets from time to time, which shows you what is available and explains what has been added to the collection in terms of profit.

6. Title Holding Trustees

Under the terms of a given trust, trustees hold the title and ensure it is safely kept and available anytime you need them. Trustees come from a trusted friend or relative or a privately owned company and separate from other businesses. The trustees have to follow the guidelines and instructions of the trust to continue being in operation.

The trustee is controlled by the beneficiary, who can fire and hire new trustees as desired. The trust's ownership remains private and is not publicly recorded under any circumstance.

Final Thoughts

Setting up a company and having it stolen or claimed by lawsuits is equivalent to losing all your hard work after years of struggling to build it up. The first step after setting up a company is to look into how all the assets are safe. As a company owner, you can sign confidentiality agreements to keep the public from knowing what you are involved in and apply for trademarks, copyrights, or patents.