In the metal trade, the money is often in the warehouse and not in the bank account. A lot must be paid before it is weighed, sold and settled; between purchase and proceeds there are weeks. This is precisely the gap that pre-financing closes — not as a credit on call, but as a transaction with valuation, documentation, time limit and agreed terms in writing.
Important ahead: MKM Metals e.K. is a metal trade, not a bank. We evaluate the material, structure the process and bring it together with our financing partners. The partner sets interest rates and fees; we therefore do not call here an interest-rate commitment, but the way there and what influences it.
What cases we prefinance
- A post that needs to be paid today. They buy a lot — storage clearance, insolvency mass, production waste of one season — and the seller wants money when handing over.
- A stock that waits for the right market in the camp. If you have to sell at falling prices, you lose twice.
- Purchase of secondary raw materials for own production, if delivery times and payment targets do not match. The part of the material is shown under Metal purchasing.
- Larger decommissioning and resolution projects, in which dismantling and marketing are months apart, the control is provided by: Project management.
As a size order, the effort from a stock value in the middle five-digit range is worthwhile — around 50,000 euros are an experience value, no access requirement. Among them is the faster way usually direct sale with payout within 24 hours.
How to determine the value of a stock
It does not finance a warehouse book, but an evaluable amount. The assessment is based on the daily prices of the 60 grades in 8 groups from the Scrap metal buying. Three figures decide:
- Type and purity. A grid box of blank copper wires and a grid box of mixed cables differ in value by a multiple.
- Proven weight. The basis is a weighing slip of an calibrated scale, not an estimate. If the stock is with us, we weigh in Ludwigshafen; if it is with you, we will take your cradles.
- Market access. For which group there is a buyer and in what time limit, a trader knows more precisely than a financier. This assessment is our actual contribution.
What determines the discount
The amount of advance on a stock depends on four things: the price stability of the grade, the storage capacity, the expected retention period and the collateral. Copper and stainless steel are more planable than mixed scrap, dry chips can be stored than oily, a lot with buyers better than one without. We do not mention a percentage here: it would be either too high or too low in your case, and a number that does not hold up afterwards is worse than none.
Which deadlines are compatible
The usual time limits in the metal trade are 14, 30 or 60 days — these are industry-standard scales agreed per transaction. The decisive factor is that the deadline fits the material cycle: a lot that is weighed and billed in three weeks does not need a payment target for two months. What is agreed upon is written in advance, with due date, collateral and costs in a document.
What pre-financing does not do
It does not replace a capital loan and an account current: it finances an evaluable amount of metal, not a turnover. It does not cover any price risk — if the quotation falls during the holding period, the proceeds fall and the financing remains at the same level. It is not a substitute for a missing inventory: without weighing slip and varietal list there is no evaluation and therefore no process. And she's not fast. If you need money this week, you better sell it directly.
What documents we need
- Commercial registration and trade application, in the event of insolvency of the decision.
- List of stocks per grade with weight, plus the existing scales.
- Location and storage conditions of the inventory, photos help.
- The last two annual accounts or, in the case of young firms, a recent overview.
- VAT identification number — for scrap metal, the beneficiary owes the tax, § 13b para. 2 no. 7 VATG.
- Legitimization of the person entitled to make the payment; from 1,000 euros, the Money Laundering Act requires a valid ID card anyway.
The procedure in six steps
- Case of the Supply or by phone: grade, quantity, location, required amount, desired deadline. Feedback within a working day.
- Determination of value per grade based on daily prices; if necessary, we visit the inventory.
- Compilation of documents — the step that lasts the longest in practice.
- Audit by the financing partner. As an experience, it takes three to ten working days, depending on how complete step 3 was.
- Conditions in writing: amount, deadline, collateral, costs. Only then does money flow.
- Marketing and billing. The proceeds shall be repaid, the difference shall be paid to you — shown per subset, with weighing slip and credit in accordance with § 14 para. 2 VATG.
When Selling Is the Faster Way
Often the most honest answer is that it does not need funding. Those who sell a lot directly to us have the money in the account within 24 hours after receipt of the weighing slip, without documents and without examination: from 500 kg with Collection Germany-wide, collection costs 40 to 350 euros by distance; smaller items per Package delivery up to 1,000 kg; or without transport costs directly in Industriestraße 4, 67063 Ludwigshafen am Rhein, Monday to Saturday from 9 a.m. to 6 p.m. Larger lots we market on request via our network, see Metal sales.