Payment for Selling Scrap Metal

I have a business in NorCal with a lot of metal equipment. I am going to be closing and will be selling all of it as scrap. I am dealing with a metal buyer who says he will pay me for each truckload. We have agreed to a total amount for the equipment in the store. I am worried that he will load the first truck with all the most expensive metals and not come back for the rest and therefore not pay me the full amount promised. How can I protect myself from such a scenario? What is the usual process when selling to a scrap dealer? I would really appreciate any information. Thank you.

Pay by the truck load? Not a good method. For instance, a truckload (for whatever size truck) of #1 copper is 34 times more valuable by weight than appliances. I usually pay ($XX.XX) for for whatever I'm getting. I take pictures of all the stuff before touching anything. I usually pay half up front and the other half somewhere at the halfway point. This way, I own the stuff and can take it home to break it down and sort it into different types of metal. It's now more valuable.

What I DON'T understand from your post is that he's "paying you by the truckload" and you've "agreed to a total amount for the equipment". Why not a set amount for everything, like I said.

Suggestion - Get bids from several buyers.

Welcome to the Forum.

It sounds like he has made a deal for the entire contents and the guy will pay him as he goes and turns it in. A little bit every truck load until the amount has been reached.

Is this right?

In order to help you further, we would need to know a little about what you have that you are scrapping. Then in order to protect yourself you could tell him to take "this pile" first, second third, etc. that way he would be taking the least valuable first with his big payday at the end, ensuring that he takes it all, and you both get paid fully.

When you say truckload, are you talking a pickup truck? Or a dump truck?

We will try and help you here as much as we can, but a little more info will help.

I think you're right, parrothead. This tells me that atk44 is dealing with someone who is trying to expand, but doesn't have the financial resources to fund the expansion OR is dealing with someone trying to take advantage, like he surmised. If they have agreed on a total price, usually he would get at least a token payment so the buyer could claim ownership. Also, he is from northern California (and I believe I know what city as I think he visited my web site). I would guess that there are all types of people (not all as scrupulous as this site's members) there involved in the scrap metal industry and certainly caution is called for.

atk44, can you give us some idea of what type of stuff and how much you're scrapping? We might even have members who can help you out.

Regardless, he's given me an idea for my next blog on my website. Thanks.

some times I hate this site, just posted a good responce only to lose it all when trying to post it

scrappers are no different then any other business or proffesional, both partys have to CYA. Contract, ID, reffrences etc. when you sign the contract make sure he pays you at least a dollar in advance other wise the contract is uninforcable.

untill he pays you it is your property he is just a contract hauler. you control the flow of material. 2 light iron loads, then a heavy #1 load, the honey goes last, by that time he should have the money to pay a substancial deposit per load.

if in doubt follow your instincts, but remember those here on this site cannot jepordise their reputations so you may search for some one here.

we are no different then any other business and more honest then some, (Banksters politicians, and lawyers) are there some unscrupulis people out there yep there is , they can only hurt you financially, they can ruin our reputation,our business, and way of life.

What I would do would be to call a big company with a local yard. They can deliver you a roll off dumpster that you can load and they take away. They will pay you per ton on what the weight is after some small fees. That would be the safest thing to do

I don't know how others on the board do it but if I give you a bid and you accept it, I hand you cash and start hauling whatever I bought.

OP hasn't been back since he posted, and that was over a year ago.

Idaho, I didn't realize the post was a year old until you pointed it out! Goes to show that some of the new members are going back and reading the old posts!

close the thread maybe ?? lol