This is
a problem with a simple solution...
Require a reasonable
down payment.
Request a bank
reference or other assurance of the Buyer's ability to pay.
If still uncertain,
stipulate payment terms that ensure problem-free payment in full.
Certified Check
- 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
check.
Wire 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.
In reality, 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. |
