Thursday, November 21, 2024

Larger companies can trade their excess products, services, inventory, capacity or production at full value through accounts receivable (AR) trading, relying on our Corporate Barter division to purchase these underperforming assets with Cash Equivalent Trade Credits.

The Trade Credits received in a Corporate Barter transaction then become a viable new asset, typically booked as a prepaid expense or accounts receivable and are used with cash to reduce cash requirements in purchasing.

With Corporate Barter, corporate trade consultants become an extension of your purchasing department to assist you to utilize your Trade Credits just like cash In the Commercial and Industrial Buying Consortium for purchasing and for capital expenses.

Corporate Barter as it is practiced today originated in the late 1960’s. At that time, Corporate Barter was primarily a financial tool – a way for companies with excess or obsolete inventories to recover costs and even full wholesale value for their inventories.

Today, Corporate Barter both remains a profitable alternative to markdowns or liquidation and provides a valuable way to expand a company’s advertising and marketing plan using trade credits as leverage to reduce cash requirements. Another form of Corporate Barter, Countertrade, enables foreign trade with countries that have products and services to exchange, but no hard currency.

Examples of corporate trade are numerous: unfilled trucking and container ships on return trips, idle plant equipment, excess maintenance inventory, discontinued inventories, remaining years on a lease when a company moves, unsold room nights at hotels and resports, underutilized real estate, and even shares of stock in a public traded company.

If you have excess inventory, underperforming assets, unsold capcity or excess production, be sure to speak you your trade broker today to explore the viability of a Corporate Barter transaction to leverage your underperforming assets into new capital.

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