WHAT IS A CASH BUYER? - Within the ship recycling industry, companies such as GMS are commonly known as Cash Buyers. A Cash Buyer as the name suggests, is an entity that purchases a vessel for Cash from the owners and delivers it to a ship recycling yard (Ship Recyclers). Cash Buyers are not brokers. Cash Buyers are PRINCIPALS/TRADERS. Cash Buyers take delivery of vessels on both delivered and as is where is terms. Business functions performed by a Cash Buyer include sale and purchase, financing (taking title of the vessel against full payment), market research, evaluation (forecasting future prices, demand/supply factors and other relevant business-specific issues) and risk management (underwriting market, operational, performance, currency, demand/supply, and various other risks).Benefits of a dependable Cash Buyer to Ship Owners:Ease of delivery due to standardization of vessel descriptions and delivery contractsNegotiations conducted with a limited number of buyers rather than a multitude of ship recycling yards in several different countriesOne stop service do not have to go to different yards in the world. Ship owners get intel on worldwide recycling markets and specific yards, with one callGuidance: since cash buyers do business with yards globally, they are BEST qualified to guide owners on various recycling optionsReceive intimate knowledge and current state of the individual recycling marketsCash payments instead of payments via Letters of Credit (L/C)Risk mitigation on behalf of the ship owners, especially in cases of a falling market, currency fluctuations, and unexpected legislative and regulatory changesManaging ship owners CSR requirementsAbility to propose, guide, and execute green recycling contractsFinancial stability to ensure hassle-free completion of agreementsBenefits of a dependable Cash Buyer to Ship Recyclers:
Having a large inventory of vessels at all times gives ship recyclers the ability to choose a vessel of their choiceExtensive financial experience helps in providing recyclers with the option of negotiating LCs (Letters of Credit) convenient to themExtensive understanding of local regulations and procedures makes delivery and beaching on the yard a hassle-free processUnderstanding the needs of the ship recycler pertaining to their requirements on the types of vessels, Lightweights they are able to negotiate, and their banking requirements makes every transaction a smooth oneExclusive local representation helps to offer personalized attention and the ability to cater to the needs of the ship recyclersAbility to forecast the markets on the supply-side as well as trends in the ship recycling sector helps to provide ship recyclers with the best service