The most common complaint from customers is that scrap dealers are unable to pay for the scrap metal sold. The issue gets worse when employees do not want to be involved in the transaction since scrap metal transactions are considered a very sensitive issue for most companies.
You can avoid unnecessary and time consuming trouble by simply following the tips below:
- Always remember that scrap metal price is not everything. Ensure that the scrap dealer has built reputation and is able to pay for your scrap metal.
In Singapore context, one way is to check through ACRA for the scrap dealer’s capital. For sample purpose, please refer to the screen shot below, it stated clearly that the capital of this company is S$9,000,000.00 (in red frame).
In case you find the capital of a company is less than S$10,000.00, you will really need to consider whether the company is able to pay for your scrap metal. Assuming you have 100 Ton of scrap metals monthly, with current scrap metal price at S$250/ Ton (total amount per month will be S$25,000.00). Moreover, This amount does not include when the dealer buys from other customers, say 50 more customers. How much capital should this scrap dealer have in order to be able to purchase and pay to all their customers? Simple calculation will result in a total amount of S$1,250,000.00 (100 Ton x S$250/Ton x 50 customers).
- Do you know that a scrap dealer must be able to assist you in keeping track of the tonnage of your scrap metal sold?
You may ask for a monthly report of the tonnage of your scrap metal sold. You can utilise this report for auditing and accounting purposes. In addition, you will be able to know whether you have too much or too little scrap metals at each project sites.
- Are you dealing with an honest and trustworthy scrap metal dealer?
Is there any unpaid transaction? Are they delaying your payment? Make sure there will not be any missing payment to your company.
- It is recommended to use third party weighing service when you are selling scrap metal to protect your own interest?
Most of the large scale construction companies are using third party weighing service. This is done to compare the differences in weight measured at the scrap dealer’s yard. Better be safe than sorry.
- Remember to adhere to all regulations set by the local authority.
In Singapore, all transactions of scrap metal MUST be done via crossed cheques payment strictly.
This article was originally posted on http://ylssteel.com.sg/.
About YLS STEEL PTE LTD
With more than 30 years of experience in the industry, YLS Steel Pte Ltd is currently one of the largest ferrous scrap metal recycling companies in Singapore. Together with wide range of steel material available, YLS Steel offers you one-stop solutions from steel material rental to scrap metal recycling for your projects.