Put it in writing
An agreement checklist for brokers and original sellers
ScrapTrade does not manage the arrangement between a broker and an original seller, so what you agree is up to the two of you. Writing it down avoids most disputes. This is general guidance, not legal advice. Have an important agreement reviewed by a qualified adviser.
| Topic | What to settle |
|---|---|
| Parties | Names, businesses and contact details of both sides |
| Material | Type, grade, quantity, condition and location |
| Authority | That the seller owns or controls the material and authorises you to sell it |
| Price or margin | The price you will pay or the commission you will keep, and what it is based on |
| Payment to the seller | When and how the original seller is paid, and what happens if the buyer cancels or the sale falls through |
| Collection and access | Who arranges collection, when, and who may inspect |
| Rejected or disputed material | What happens if the buyer disputes the material |
| Records | Weighbridge tickets, photos and documents each side keeps |
| Ending | How either side can end the arrangement |
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Register as a sellerThe price question
Decide when the seller gets paid
The biggest source of disagreement is timing. Decide whether the original seller is paid before the buyer pays, after the buyer pays, or on delivery, and what happens if the sale does not complete. A broker who pays the seller first carries the risk of a sale that falls through.
What not to agree to
Terms to avoid
Be cautious of
- Any arrangement where you cannot show your authority to sell
- Promises of a buyer or price you do not control
- Moving a buyer's payment off the platform
- Verbal terms with no record
In Australia
Is it right for you in Australia?
In Australia, a broker normally needs to think about an ABN, GST and whether any state licence applies to dealing in scrap. Speak to a registered tax agent and your state regulator before you start.
Frequently asked questions
Does ScrapTrade manage the agreement between a broker and the original seller?
No. The margin or commission is arranged privately between them, and ScrapTrade does not manage brokerage agreements or payouts.
What should the agreement include?
Parties, material, authority to sell, price or margin, payment timing, collection, handling of disputes, records and how it can end.
When should the original seller be paid?
That is for you and the seller to decide. Settle it in writing, including what happens if the sale falls through.
Do I need a lawyer?
For anything significant, have it reviewed by a qualified adviser. This checklist is general guidance, not legal advice.
More about scrap brokering
Sourcing scrap to resell?
Register on ScrapTrade and list it as a broker.
Related reading: Is brokering right for you? · Scrap broker FAQ · Scrap agent vs scrap broker