The Yard Check Bounced

I went through this once - kind of. I showed up at a yard to find a Closed sign in the door. Talked to the manager. A check had bounced earlier that day. Now, he needed to wait till he got paid for his last shipment to be able to accept any more. Within a month, the yard closed permanently. That's why the first advice to guys who want to start a scrap yard is - have deep pockets. Nothing will kill a scrap yard faster - even a small-time guy - than a bounced check. My advice is get the money for the stuff you sold plus fees and in cash - that is if you are legally responsible to the check-cashing place. If not - let them go after the yard themselves. Regardless, your next move should be finding a new yard. You'll need it. That one isn't managing cash flow.

Originally Posted by Mick

I went through this once - kind of. I showed up at a yard to find a Closed sign in the door. Talked to the manager. A check had bounced earlier that day. Now, he needed to wait till he got paid for his last shipment to be able to accept any more. Within a month, the yard closed permanently. That's why the first advice to guys who want to start a scrap yard is - have deep pockets. Nothing will kill a scrap yard faster - even a small-time guy - than a bounced check. My advice is get the money for the stuff you sold plus fees and in cash - that is if you are legally responsible to the check-cashing place. If not - let them go after the yard themselves. Regardless, your next move should be finding a new yard. You'll need it. That one isn't managing cash flow.

Good advice and I'm on it.