Take a check?

[GLZ]

So this is kind of cattle related, but maybe not entirely.

I have a situation where I have been trying to sell a young horse for quite some time.  I have listed him on a couple of different sales sites.  Last night I got a call from a guy that lives about 6 hours away from me.  He might come down and see the horse today.  This got me thinking.  I don't know the guy from anyone, and he lives six hours away from me.  If he decides to purchase the horse today, is it in my best interst to take a check and send the horse down the road.  He isn't a high dollar horse by any means, but I would hate to have him disappear and have a bounced check on my hands.

I never worry about taking a check with the limited cattle I have sold in the past because it was all local people who I trust.  This guy may be extremely trustworthy, and more than good for the money I was just curious what others do in this situation.  I know with cattle a lot of times it probably doesn't fit the above scenario but I would say there may be some times of private treaty where it does.  Just wondering what others do.

 

[the_cowgirl_in_me]

Call and tell him cash only.

 

[pjkjr4]

I've had some experience on this sort of thing in the past. You have a couple of different things on your side. He can write you a check, and you still have protection. For one thing, you can tell him that you need to call his bank before he leaves the premises, to make sure he has funds in the account (if he does now, that still doesn't mean he will in the next 2-3 business days, but, it was there at the time). Secondly, this is a point of sale transaction, so you have the law on your side. If it comes back returned, you may take it to your District Attorney, and they will collect, or put him in jail, or both. Any amount over $1,500 is a federal offense, and the person would have a felony record. Another thing you could do, (this is my personal reccommendation) is, if the check has been returned once, tell your bank to present it to his bank for collection. In this instance, his bank will place the check aside until enough funds are in his account, or 30 days, whichever comes first.If the 30 days are up, and you still haven't got your money, you may start the whole process over. At the moment they are, the check will be run through, and the funds will be available to you within 1-2 business days.
Hopefully, this will be a smoothe transaction, and you won't have to worry about all this. Unfortunately, there are people around that don't care enough to be honest. Also, anytime you do anything regarding this transaction, document date, time, who you talked to, etc., so if the D.A. gets involved, they can do their job correctly.

 

[cattlejunky]

We had a problem with a bad check and were told it is important to get the check writers date of birth and drivers license number.

 

[Bawndoh]

Do you guys not have certified cheques down there?  They are like cash.  You have to go to the bank beforehand and tell them how much you would like the cheque for.  I think it makes the cheque more like cash, and instantly takes the money out of your account.  Anyhow, it is what we do up here 90% of the time.....or yes, cash.

 

[ROAD WARRIOR]

As an auctioneer/sale manager I have really not had alot of problems with bad checks. If you are really concerned about it you can either call his bank, request a letter of credit from the bank, request a cashiers check or cash. You can also keep the animal until the check clears his bank. Most people that are going to spend a significant amount of money will have their funds lined up before hand, but I don't blame you for being cautious. RW

 

[AAOK]

I've had some experience on this sort of thing in the past. You have a couple of different things on your side. He can write you a check, and you still have protection. For one thing, you can tell him that you need to call his bank before he leaves the premises, to make sure he has funds in the account (if he does now, that still doesn't mean he will in the next 2-3 business days, but, it was there at the time). Secondly, this is a point of sale transaction, so you have the law on your side. If it comes back returned, you may take it to your District Attorney, and they will collect, or put him in jail, or both. Any amount over $1,500 is a federal offense, and the person would have a felony record. Another thing you could do, (this is my personal reccommendation) is, if the check has been returned once, tell your bank to present it to his bank for collection. In this instance, his bank will place the check aside until enough funds are in his account, or 30 days, whichever comes first.If the 30 days are up, and you still haven't got your money, you may start the whole process over. At the moment they are, the check will be run through, and the funds will be available to you within 1-2 business days.
Hopefully, this will be a smoothe transaction, and you won't have to worry about all this. Unfortunately, there are people around that don't care enough to be honest. Also, anytime you do anything regarding this transaction, document date, time, who you talked to, etc., so if the D.A. gets involved, they can do their job correctly.

Your best advice is thatof pjkjr4.  Don't plan to do much business if you won't accept a personal check.  DO NOT demand Cash, Cashiers Check or Money Orders.  Many people will bring cash expecting a better deal, which usually works.  Cashiers checks and Money orders are too easily forged, and have become almost worthless. 

I have probably taken 250,000 checks in my lifetime from people I haven't known.  I would guess no more than 1000 were bad (mostly insufficient funds).  Our District Attorney's office collected those I received from the real crooks.  I had one (the lady was imprisoned for 20 years) which I received restitution of $1.50 a month for several years.

The best thing you can do when a buyer comes to your place is get to know them.  Ask about their work, familiy, hobbies, and why they came to see you.  If you question people, and listen to what they say, it's pretty easy to identify a fraud. 

 

[jason]

Yeah, you almost have to take checks in this business.  I use my gut instinct.  I do prefer cash and will make a better deal accordingly depending on how much $$$ money is involved.

I got a scare one time where the teller of the bank told me a cashiers check for amount of 18,000 look fraudulent.  An hour later they got a hold of the person at the bank that issued the check and they confirmed the check was good. 

 

[cdncowboy]

Tell ya what I wouldn't drive six hours to give ya a bad check.  But thats me unfortunately some people will,  sometimes you gotta give people the benefit of the doubt in these dealings.

 

[afhm]

It'd cost you a little more but offer to deliver the horse after the check clears or meet somewhere in the middle

 

[Show Heifer]

Trust your gut. You even ASKING the question raises a red flag to me!
Second, if and when the guy shows up, ask about his work, his family (as someone suggested). I have been known to go to a persons work place to "inquire" about payment. Yep, pretty embarrassing to THEM and they hate that (no, I do not say what it is about, but that it is a "personal matter"). Another thought if a cattle or horse producer. Go to their sales, and get the money there. RW being a sale manager should realize that the last thing a seller wants is bad PR at the actual sale. Even if it is just a "suspiscion".  I am not talking about harrassment (that would be illegal) but making yourself visual to the bad check writer.... their co workers, business assoc will put 2 and 2 together on their own.
And if totally uncomfortable.... tell him you will deliver the horse. Then you know where they live.

Take a check: Get dirth date, Drivers License number, and I write down licence plate numbers on truck AND trailer.

Wish you luck, but from you asking the question.....I would be leery.

 

[olsun]

Take it from an old horse trader, it is never wrong to ask for cash. Horse people like green money. And it has always been my policy to accept a little less for green money. I take checks, but only if I know the people, or if we have a mutual friend who can vouch for them. Cash is good. (clapping)

 

[CM Cattle]

Take it from an old horse trader, it is never wrong to ask for cash. Horse people like green money. And it has always been my policy to accept a little less for green money. I take checks, but only if I know the people, or if we have a mutual friend who can vouch for them. Cash is good. (clapping)

I feel the same way.

 

[justintime]

I have always accepted cheques and many have been from people I did not know. It is a part of doing business and I have never been burnt yet . I have had a couple cheques bounce, but the people have made sure it was replaces quickly. Sometimes, unexpected things happen.  I have had a few people, over the years, ask me to hold their cheque for a few days. I appreciate them telling me this, and I have found these people to be very honest and have never had any issues with their cheques.  I agree with AAOK, in that, if you are not willing to take a cheque from someone, you should also be willing to forgo some business... maybe even a bunch of business.

Most people who have a cheque bounce for insufficent funds are very embarrassed by this happening, and they do do everything in their power to correct the problem.
I have on occasion taken monthly payments or set up a payment schedule with a person. When someone says that they would like to buy but don't have all the money right now, I offer them terms but I include a fee for doing this, and also insist on a sizable down payment.  I have always found that I usually need income 12 months of the year, and it really doesn't matter when it comes... as long as it does. I have sold large groups of cattle in this fashion. Last year, I sold 16 bred females 6 open heifers, 2 ET heifer calves and their reip moms, and a flush, to a fellow in this  manner. This sale came to $52,000. He asked about terms and I asked him what would work for him. He offered $12,500 down and $5000 a month until it was paid. He kept his word, and the payments came when they were supposed to come. Of course, I never transfer any registration papers until the deal is completed. This is another reason for the buyer to get it done.

I feel that you have to have some faith in people and offer them some trust. I also agree that you have to rely on your gut feelings about a person. There are some people I would not offer the deal I did above. I also think that most people appreciate the trust you offer them and it usually results in a repeat customer. Maybe it is different in some areas, but i find most people involved in the cattle business are honorable people. This business can be tough, and like most of us, people oftentimes are cow rich and cash poor. This is why I have been willing to work with my customers. A sale is a sale, and it is not unlike holding a production sale. The most important number is the total income received during the year... and like holding a production sale, the most important number is the Total sale proceeds, rather than the price received for each individual animal.

About 25 years ago, we had a cattleman stop in to look at our bulls. In our visit he said he really needed two bulls but only had the cash to but one. I asked him what kind of terms would work for him, and he offered to pay for one bull now and the other bull when he sold his calves 5 months later. I accepted his terms, thinking that $2500 in the fall was better than having bulls in the bull pen through the summer. He kept his word and stopped in on the day he sold his calves that fall, and paid the balance. Since then, he has purchased 11 more bulls from me... probably not because he had too... but because he wanted too. Last year, when we were having coffee after he had selected his 13th bull from us, he mentioned how much he appreciated us giving him credit when he was having some financial struggles.