Who owns the equipment?
You do. You account for the transaction as if you paid cash for the machine tool. Although the transaction is subject to applicable sales tax, the machinery can be capitalized and depreciated on your books in the same way as it would on a cash basis.

How is the machinery paid for?
You contract to sell American Iron your scrap metal. The initial price you receive for your scrap will be discounted until the cost of the machine is amortized. The discount and time period will vary depending upon the value of the scrap, the rate at which it is generated, the cost of the machine, and the length of the contract.

What happens after the equipment is paid off?
After the machine is paid off, American Iron will continue to buy your scrap metal at market levels, or you may opt to build up a balance to apply toward the purchase of additional equipment.

Where do I obtain the equipment?
You must purchase your selection from ORCA, Inc., a Minneapolis-based national supplier of new and used machinery.