is a problem with a simple solution...
a reasonable down payment.
a bank reference or other assurance of the Buyer's ability to pay.
uncertain, stipulate payment terms that ensure problem-free payment in
Funds - Require buyer to have a Certified Check for the estimated
sales amount at delivery. After weighing and/or sorting the cattle,
if the actual amount due is more than the Certified Check, accept the buyer's
company or personal check for the difference... If less, you give him a
Transfer - Once the total sales amount is determined, require
buyer to wire the funds to your bank account. You don't have to
wait for the funds to get to your bank. Once the buyer has called
in the wiring instructions, have your bank verify with his bank that the
wire is underway and you can be assured the funds will arrive shortly.
An advantage to this plan is that "wired funds" are "collected funds" and
you will get immediate credit at your bank instead of having to wait several
days, or more, before you have access to the sales proceeds.
the payment plan described above is the safest way to go... Many
cattlemen will recall that auctions, feedyards, and order buying companies
can become insolvent just like an individual... And dealing with
a "bonded" buyer or company provides a false sense of security because
if a major problem arises, the amount of the bond is often insufficient
to cover a large claim or multiple smaller claims, and you could end up
getting "pennies" on the "dollar" for your cattle.