Sales proceeds question
Moderators: Roguelet, WaveMaster, madelyn
Sales proceeds question
How long does it take from the fall of the hammer to the time an owner receives the money for selling a horse? What are the steps in the process?Let's say a horse sold in November.
I'm no expert, but here is my experience.
From the fall of the hammer until the checks go out varies, because they send them out four weeks after the last day of the sale. Then the sales company sends the check, net of commission or catalog fees, to the CONSIGNOR. Then the consignor, in a week or so sends the next check, net of consignment, sales prep, etc., to the seller.
I sold a filly on day three (Nov 7th, 2007) at Keeneland November and I got my money from Three Chimneys on December 26th. So it took 49 days. HOWEVER. If the sales company did not get settlement on the sale of a horse, they do not pay the consignor. The four weeks is to allow settlement. If the seller has an Agister's Lien against him, the sales company must honor that first. So if there are any unpaid board bills in KY, those will come off first if the farm filed a lien.
In the past, I have always called to make sure the sales company is on track to send out a check.
From the fall of the hammer until the checks go out varies, because they send them out four weeks after the last day of the sale. Then the sales company sends the check, net of commission or catalog fees, to the CONSIGNOR. Then the consignor, in a week or so sends the next check, net of consignment, sales prep, etc., to the seller.
I sold a filly on day three (Nov 7th, 2007) at Keeneland November and I got my money from Three Chimneys on December 26th. So it took 49 days. HOWEVER. If the sales company did not get settlement on the sale of a horse, they do not pay the consignor. The four weeks is to allow settlement. If the seller has an Agister's Lien against him, the sales company must honor that first. So if there are any unpaid board bills in KY, those will come off first if the farm filed a lien.
In the past, I have always called to make sure the sales company is on track to send out a check.
So Run for the Roses, as fast as you can.....
Hi Johnt,
Just to add to what Madelyn wrote.
You can always call the sales company directly to find out when the proceeds will or have been sent.
Keep in touch with your consignor.
Sadly, I know of cases where the consignor has delayed payment, made excuses and even used client sales proceeds without permission.
Most sales companies will send the proceeds directly to you (ask, or check the appropriate box) but they will want to deduct your consignor fees. If you want direct payment, tell your consignor beforehand (they may be annoyed) and ask them for your bill as soon as possible after the sale so that you can review it.
Regards,
Pete
Just to add to what Madelyn wrote.
You can always call the sales company directly to find out when the proceeds will or have been sent.
Keep in touch with your consignor.
Sadly, I know of cases where the consignor has delayed payment, made excuses and even used client sales proceeds without permission.
Most sales companies will send the proceeds directly to you (ask, or check the appropriate box) but they will want to deduct your consignor fees. If you want direct payment, tell your consignor beforehand (they may be annoyed) and ask them for your bill as soon as possible after the sale so that you can review it.
Regards,
Pete
Has a palomino jean that pop up some.
This stallion is DNA ... all foal can be MBNA inrolled.
Horses like their credit cards. - Four Forty Farms
This stallion is DNA ... all foal can be MBNA inrolled.
Horses like their credit cards. - Four Forty Farms