How much do you know about the company you're buying from?
Buying recycling machinery: it pays to be cautious.
Its not uncommon for difficult economic conditions to expose business weaknesses. Current market conditions have shown some vendors of recycling equipment to be unreliable. We've decided its critical to understand key risks associated with purchasing machinery, and educate our customers on ways they can protect themselves against a bad deal.
Let's review a few of the economic hazards:
Non-delivery. Alan Ross Machinery Corporation conducts credit checks, reference checks, takes physical control of some equipment, and often acts as a backstop against non-performance by the seller. If you pay for machinery you ought to actually receive it.
Bad title. Did you know machinery you purchase could be encumbered? It could be collateral on a loan, subject to a court judgment or tax lien? This is why all equipment over a certain dollar amount is subjected to UCC searches, corporate registration searches and title investigation by our staff and if necessary our outside counsel. One you've got the machinery, you should be able to keep it.
Under-insurance. Equipment vendors (including brokers) who buy or transport equipment for resale or receive it for reconditioning must actively manage their insurance for appropriate coverage during transport and storage. Alan Ross Machinery's information systems allows us to ensure we maintain adequate insurance coverage for equipment under our control. Adequate insurance coverage is part of responsible risk management.
Representations and warranties. Equipment, particularly second-hand machinery, can be difficult to assess. Buy from a company that can demonstrate the equipment, offers a warranty option and has references and a reputation for honest dealings. Nothing is a bargain if you're dealing with an unethical or irresponsible counter-party.
Most equipment vendors are reputable firms with strong reputations for service and support. But unusual times call for extra vigilance. Keep an eye open for bad actors in the equipment marketplace. Ask industry colleagues about a vendor BEFORE you buy.
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