Per Ton Metals - Deal intelligently with trading and payment risks

Marc de Wit, owner Per Ton Metals

Large rolls of metal, plates, and pipes. On the homepage of Per Ton Metals, you immediately see the core business in full view: photos of lots of steel and metal. The Veldhoven-based company purchases “2^nd choice and overstock” metal from the largest steel mills such as Tata Steel and ArcelorMittal. These lots are then resold as quickly as possible – often the same day. Many of these materials are offered to customers in central and eastern Europe through a Per Ton Metals agency. In addition to the markets mentioned, larger tonnages are shipped to countries such as India, Pakistan, and Egypt.

From stainless steel to galvanised sheet metal; it concerns high-quality metal – even if the batch is ‘rejected’. For example, because there is a scratch on it or because the dimensions are not common. Many companies are interested in these residual lots. The Per Ton Metals website includes an extensive database within which customers can indicate their specific product interests. If a shipment of metal has been purchased, an automatic message will immediately be sent to those companies for which the shipment may be of interest. The quality can be assessed based on the photos on the website.

Per Ton Metals provides national, international, and overseas transport. To this end, the company works with renowned international transport companies and shipping companies. Owner Marc de Wit: “when we pick up a batch from a supplier, the trick is to be able to deliver it directly to the end customer. Then you have a single shipment and therefore only a single expenditure. You can then offer the customer an even more attractive price. If you have to store the shipment in the meantime, this will lead to additional unloading, warehousing, and loading costs. For temporary storage, we can always fall back on four locations in Europe”.

But before we deliver, we want to be sure that we will be paid. There are payment terms for that. “I have been in this business for a long time. I know many customers personally. I also regularly go on business trips to visit my customers. Then you know what your are dealing with. But it is always difficult to place your complete trust in customers”.

“Many customers buy from us on credit. There is only one condition: Allianz Trade must set a limit for the customer in question on our trade credit insurance. Does Allianz Trade think it’s too risky and won’t give the green light for trade credit insurance? We then tell the customer that the money must first be in our account before we can deliver and start transport. In this way, we prevent problems and minimise risks. Of course, you don’t want to suddenly find yourself in a tight spot because a few customers don’t pay. In this way, we have fully covered the payment risks. Our suppliers also like it when we pay on time. That is also quite important. In principle, we use trade credit insurance – if possible for every customer. It’s part of our business model. That gives us the assurance we need".

A trade credit insurance helps you and your company. It provides peace and security for entrepreneurs. How? With a trade credit insurance, you know that your invoices will be paid.

Your company maintains financial health through well-organised accounts receivable management. And your cash flow is protected as well. With a customer check in advance, you know precisely which opportunities you can seize. And that works out well.