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Bread4 Scrap Case Study: Chase Metal Recycling

How one of Bread4Scrap’s longest-standing clients, Chase Metal Recycling use prepaid cards for scrap metal payments.

Chase Metal Recycling one of the Midlands leading scrap metal recyclers, established 13 years ago, became a client of Bread4Scrap back in 2013, and haven’t looked back since. The company are very happy with their prepaid card system and have noticed demonstrable advantages.

Chase Metal Recycling

The company are based in Cannock and specialise in scrap metal services for commercial, industrial and domestic sectors. They have a great reputation and are known for providing environmentally friendly recycling with no hidden surprises. Chase Metal Recycling buy all kinds of metal, including ferrous and non-ferrous, and also provide free collections. 

Choosing Bread4Scrap

Previously, Chase Metal Recycling were making payment via BACS or cheque. While they found that these payment solutions worked well, they wanted to offer customers a better, quicker payment method to choose from. As a company, their aim was to always provide customers with the best service possible and being able to pay them quicker. Offering a prepaid card option with Bread4Scrap have helped them to achieve this.

New laws mean new solutions

In 2012, it became illegal to buy scrap metal and cars using cash. This meant that scrap metal dealers could no longer use cash to buy metal and instead could only use electronic payment or cheque. Chase Metal Recycling new that this law would affect their business, so contacted Bread4Scrap to bring in a new cashless option.

Bread4Scrap prepaid cards

The company introduced Bread4Scrap prepaid cards, offering customers a safer way to pay. Working with Bread4Scrap was simple and easy. Chase Metal Recycling first signed up to the card scheme, where they were taken through security checks to ensure Home Office Compliance. Their account was set up on the payment management platform.

Once these security checks were completed, the company were sent the cards to be held on-site. Chase Metal Recycling then loaded their float for making payments to cardholders and started adding cardholders and issuing cards. They were able to start making payments right away. Plus, there were no setup and loading fees.

Happy customers

Chase Metal Recycling has been incredibly pleased with their prepaid cards from Bread4Scrap. They have offered customers a safe way to pay while avoiding legal issues and complying with the Home Office. Chase Metal Recycling has said:

“Bread is an easy system to use, payments can be made within minutes and if an error is made on the system, we are able to unload cards instantly. We have a very good working relationship with the company who are always kind, helpful and friendly.”

Since using the prepaid cards, Chase Metal Recycling have noticed great benefits. They are issuing fewer cheques, so they are not charged as much in fees from their bank. Also, their customers can access their money from the cashpoint a lot faster, rather than having to wait for a bank transfer to clear.

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How Covid-19 is affecting the scrap metal shredder market

With the coronavirus pandemic affecting all aspects of the UK economy, the metal shredder market is no exception. With trade changing across a multitude of countries, the recycling market is near the top of the list of those to be affected. As the scrap market’s functionality is dependent on the prices of metal, a country’s economic position is a key component in its potential growth and success. Here we discuss how Covid-19 is taking a toll on the scrap sector and its businesses:

Changing currency values

Quite simply, if the currency value changes, the price of metal scrap will inevitably be affected and the general metal industry will take a hit. It goes without saying that the global economy is in disarray, and it’ll most likely take time for the value of currencies to be evaluated correctly. Plus, the situation is constantly changing, which makes this even harder to work out. However, the results of this will be crucial for the scrap industry and have the potential to determine the success of its future. This will then have a direct impact on any scrap metal shredders in the market.

Restricted movement

As the Government continues to encourage restricted movement where possible in an attempt to keep the spread of the virus to a minimum, the scrap sector is being hindered. If people are unable or unwilling to move between cities, their metal scrap will stay put along with them.

This means that scrap dealers are more inclined to shut down during the pandemic, which will further affect the scrap metal shredding market, as its revenue growth is limited.

There are small rays of hope, as can be expected with such a regularly changing situation. For example, since China has recently lifted its lockdown, they can now continue to drive the metal scrap market, offering hope for growth in the near future. However, we have seen countries lift their lockdowns only to reinstate it weeks later when cases begin to rise, meaning the situation is extremely precarious.

Shortage of workforce

As mentioned above, many scrap yards have made the decision to close throughout the pandemic. Even those that haven’t are now suffering from a shortage of workforce, meaning they are likely to follow suit. Businesses may be short on money and therefore cannot afford to pay every member of staff, and many people are still afraid to return to work, particularly those who fall in the at-risk category if they were to contract the virus. The Government approach to the scrap metal sector looks to be fairly lenient, with them being more focussed on safety and ensuring essential businesses are able to continue functioning to some degree of normality.

Less demand

As the economy slows to a stop, it is expected that the demand for the scrap market will decrease, meaning production levels will fall. Overall, the changing nature of the coronavirus pandemic leaves the scrap metal shredder market in a state of uncertainty for the foreseeable future.

However, all is not lost!

Bread4Scrap has been partnering with scrap metal recyclers in the UK since 2016, and we are here for you, whatever the situation may be. Don’t hesitate to contact us today for guidance.