Bad Checks

Hit a milestone this week. Got a bouncy check from my scrapyard. It's the Christmas season and I may just forgive them. They've put alot of investment into the enterprise with a new site out of town, a huge scale and good employees. It was a good operation and I've seen it decline in the last year when I noticed employees disappearing, reduced hours and then gates closed with a sign directing to call via phone to have someone come unload.

They had been robbed of non-ferrous three different times in the past two years and also lost a new flatbed trailer from the lot. They had to install security cameras at a huge cost. A young well liked family owns the place and it's unfortunate that the scrap prices will no doubt ruin their business. Feeling sorry for those who rely entirely on scrapping or own a scrapyard. Not what I like to see, and I don't think they can hold out much longer. Just a few bad checks and their customers will go elsewhere.

Yeah that's stinks. I hate when any small business goes under, especially in towns where innovation and New ideas are killed daily(mine). Here's hoping they can pull out of the slumps and win!

Hate to hear that as well. My advice would be to talk to them and they will likely make it right. I've been in this business for awhile and I've seen the ups and downs. This is definetly one of the down times but hate to see someone struggle because I have been there.

Ouch- that's not good! I'd talk with them, too- hopefully it was just a clerical error that can be resolved quickly.

That's a pretty rough road for them for sure....

I've gotten one once, from a fairly large, but local independent yard. Lots of customers do it ona particular day, They immediately made them right with cash. Good luck

Sign of the times. Just google pure metals in Chicago and look at the news. Some yards have good balance sheets and some can barely pay the bills and keep the lights on.

I can't even relate to this because our yard pays in cash to walk-ins. The only checks we send out are to businesses we pick up from and my boss is good about making sure there is enough money to cover the checks in that particular account.

Just have to wonder about this , with cutbacks across the industry, maybe a secretary or even owner (if they run the office/books) just didn't move money from one acct to another or wrote checks before checks they received as payment cleared the bank. A case of one hand not knowing what the other did sort of. I know there is a word for that but can't think of it - kiting? maybe -? Or again, just plain bad management and no money to begin with.

Kiting is like this scenerio:

You have $100, two bank accounts, and each account has one bill/check owed that is $75. Kiting is the process where you move that $100 (It could be less) between the two accounts frequently. This way, in theory, each account will show a $100 balance temporarily. It is of course illegal, and would quit working as soon as one of those checks cleared, as there would be no money to move.

I could see it being a clerical error. Our yard pays cash too, though with shred paying nothing at all, I doubt they need much cash on hand.

Its called working capital. You can't do business without it. I don't have lots of money but I know that cash in my pocket has allowed me to make deals that wouldn't have happened otherwise.

Lesson guard your cash, money talks and BS walks. Mike

Yunkman- Sorry to hear your problems in getting paid again. Hope it clears up!! I tried pm-ing you about whether you ever got paid from our local e-waste buyer but your inbox was full. Silverock...finally did. Hope that buyer made it right with you as I saw he posted things for sale again on SMF earlier this month. Is your band going to be playing at that Iowaian casino anytime soon??

Rog, I'll have to give the old boy another call as I didn't get paid. Hope he's back in business.
Yes, we'll be at that casino:

Sunday, Feb 21st
2pm - 6 pm
In the Lounge

I'll let you know if the time is different.
My mailbox is empty now.........I hadn't dumped it since I registered. LOL

there is another possibility especially on the holiday;
high security checks must be "called in" to the bank to be valid for cashing "completely prevents forging"
someone might have missed a cut-off time to "call in" and activate your check,

I hear this on Saturdays "this check will not be valid til Monday at 11:00AM"
now of course if you take it to an old school Mom&Pops check cashier with out computer access, and they don't try and deposit the checks first thing Monday morning you are golden

V/r HT1