How is this barter network different than others?

The #1 difference is that we don't charge cash; there is no cash initiation fee, no cash monthly maintenance fees, no annual cash membership dues, nor any cash commissions. We are the only global barter network that accepts our own trade credits as payment. Besides the total absence of cash fees, there are many other differences between this network and existing ones. Every member trades with preferably their accountant, or Chamber of Commerce, as their trade broker. Our scope is truly global, and designed specifically for mobile use. Trading within other cities, or other countries, is as easy as trading in your hometown. Because our holding company is based offshore, we do not have to collect any tax from our members, making our dream of a trading platform that never charges its members cash an attractive reality.

Each member can apply for a zero-percent interest line of credit upon initiation to the network. The member may spend their credit in the network before offering up their goods and services. The client has unprecedented access to trading locally, nationally, or internationally, while minimizing the complications and need for numerous phone calls between separate franchise operators, and outside trade brokers with other networks. We believe the franchise model to be an expensive hindrance to efficient trading which serves only to enrich the odd founder with quick cash, at the cost of higher cash fees, passed on to their members. These types of operations usually have the worst rates, and none accept their own currency. We don’t think much of a currency issuer (or their currency!) if they will not accept it themselves. We practice what we preach. Our mandate is to NEVER charge our members fees in usurious fiat currencies. That would make us part of the problem, rather than the solution.

Members will be assigned a preset credit limit, trading above which will simply require each client's accountant to sign off with the executive, that they agree it is a good deal for the client, and within their means. Another significant difference is that we are approaching reputable Accounting Firms to list and broker their client's accounts with us. No other corporate barter network is run by the client's accountants. Who better to find ways to save you money, than the professional that already does? Not only to help save your money, to but to increase profitability. Imagine trading online worldwide, with members each operating in their own language. The opportunities are global. We don't restrict our members to territories or franchises, as we believe those business models in the trade platform context, to be not only obsolete, but positively backward.

What are the benefits to bartering goods and services for trade credits?

Before there was commerce in currency, there was trade. You produce something for me, I do something for you, and so we trade. It is still called trade for a reason. The benefit to trading, is that it allows companies (and the individuals they concern) to use unused capacity profitably. It facilitates keeping prices up, instead of dropping them in desperation to acquire Legal Tender to pay debts. A trade network eliminates having to trade directly for required goods or services, because the client members use the network as a trade circle. Member A has something that Member B wants, but Member A wants what Member C has, and Member C could use something from Member B... or Member D, or Q. No matter. Every member saves on the goods or services acquired at a rate equivalent to their own cost of goods. When the cash economy (which is not backed by any intrinsic value) is behaving poorly, trading on a platform, in a private currency, backed by the goods and services of the members, is not as crazy as it sounds. Further, there are no exchange rate conversion fees on international trades, as there are, with national currencies.

Isn't trading on the barter networks an easy way to get burned?

A barter network is only as good as its members. Yes, we have all heard the horror stories about mismanaged or downright fraudulent barter networks. However bad deals are not limited to barter companies... If you are a diligent business person, you will accept responsibility for trading poorly, whether it is on a barter exchange, or on the stock market. Even trading marbles on the playground can produce disappointment! No market is without risk. Minimizing your exposure to risk is the only recourse, and we think we have you covered as well as we can here. We are always open to suggestions on improving our network. We believe that our client's success with trading reflects on their entrepreneurial spirit, and on their accountant's ability to monitor their business and direct their trades accordingly. There is an easy way to ensure that you don’t get burned: Stay in the red, and zero your account as you spend. You don’t need to go into the black, unless you want to keep converting excess into profit.

How can you offer a 0% interest line of credit (trade deficit)?

To get you started, we offer you a line of credit (technically a trade deficit) in our network, at 0% interest* (some conditions apply). You trade what you want out of your inventory (goods or services) to pay it back after you spend it. Nothing to lose! Our lines of credit are interest-free, because we don't pay your account interest when it is in surplus. This is a simple way to finance at least part of your business or personal expenses, interest-free.

Why would any business let their trade credit account go into the positive if they can still purchase while in the negative?

Some reasons to go into the positive and continue to trade your goods are increased exposure, and that fact that trades usually generate new business in cash terms, and/or stronger "priority positioning" to acquire the "big ticket" items, such as real estate, when they become available for trade credits. For instance, if a developer lists a condo and lots of members want it, the priority will go to those members with the largest positive balance. The developer uses the trade credits earned to cover lots of trades: plumbers, electricians, landscapers, painters, bookkeepers, sign makers, printers, media, lawyers and architects, among others.

How about the taxes?

Our software will track and submit a copy of your sales taxes to you and your national taxation service, at your request. Also, goods or services acquired on the network that are not for company use, but have been drawn as a payment to shareholders, can be tracked separately for personal income tax purposes. This is standard procedure, however as we are an offshore platform, tax reporting is the responsibility of the client, and is not done by us unless requested by the client (with the exception of US members, for whom we must submit a 1099-B form to the IRS). No, you can't pay ALL of your taxes in our trade credits yet, but you can use trade credits to purchase tax-deductible receipts from registered charities and non-profits!

Does Collective Currency Exchange charge sales tax on commissions?

No, we are an offshore company in a tax-free jurisdiction. There is no tax owing on our any of our fees. If the jurisdiction attempts to tax our fees in the future, we will move jurisdictions. Our primary mandate is to never to have to collect any cash from any our members.

When my account is positive, can I just work on spending my credits, and limit the availability of my goods and services?

Yes, when your account is positive you can "turn off the taps", and just work on spending your way back into a trade deficit before you offer more of your goods or services to the network. The choice is always yours. Many companies will opt to craft a custom offer when their account is in the positive, such as 50% cash, 50% trade dollars. This keeps new business coming in, and encourages repeat business.

Why are some goods and services offered at 100% trade, while some are trade/cash blends?

We leave that to the preference of the seller. For instance, at 100% trade, the items clear quickly, because we all love to buy things in 100% trade credits. This generates lots of interest in your business very quickly. Adding a cash portion to the sale gives more pause for thought on behalf of the buyer. If the buyer believes the item to be at fair market value, the buyer is still saving on a portion of the sale, and that may still be attractive to them. As long as all goods and services are listed at a genuine price, and never an inflated one, the system works well. Some networks insist on listing everything under a certain price at 100%, but we don't want to limit your creativity in using our platform. You customize your offerings to what suits your business best. It's all about choice for the buyer and the seller. Supply and demand is the only economy we are interested in.

How long can my account stay in the negative?

As long as you are actively trading 100%* of your balance annually there is no problem. If your account is in the negative and stagnant for 12 months** we may exercise our right to collect collateral or legal tender, as agreed upon in your acceptance of the trade deficit contract.

Are there tax advantages for saving trade credits, and is it possible to use them for investment vehicles?

Yes. You can donate trade credits to charities and receive receipts for tax purposes. Why donate out of your sold goods or services, when you could donate out of your "unsold" goods or services? It is also important to realize that trade credits are not taxed as income until spent, thereby offering a great vehicle for deferring taxes. There are also RRSP's, RESP's, corporate stocks, and other investment funds that accept trade credits.

Can the trade credits be converted to cash?

If you are creative, you can not only turn them back into cash, but at a profit. For example, buy goods for Trade Dollars, and resell them for cash. If your original cost of goods is low enough, you might still make a margin on the other goods, by underselling them. Alternately, you can find many venues for Trade Dollars: catering, printing, musicians, advertising, etc. By selling tickets for cash, to a concert put on in Trade Dollars, they can be converted back to cash, at a profit. You are limited only by your imagination. Many investments, such as shares, can be paid for in trade dollars, and later sold for cash. For example, a winery pays a courier service 50% cash and 50% trade credits for delivering cases of wine to customers. The winery charges the customers the full delivery fee in cash… Trade credits are converted back to cash.

Do I owe commissions on both the cash and trade part of a sale?

Yes. The total sale is the value that we calculate our commission from. Our rates are very reasonable, and they are on a sliding scale, so that the bigger the trade, the lower the commission. For facilitating the sale, we are taking the entire commission in trade credits. Your cash is safe from us!

Your network is ambitious, but there are not very many local members. When will there be more to choose from?

The more that sign up, the more that will sign up. If you believe in what we are saying about our barter exchange platform helping the vast majority of businesses, then you understand that you have nothing to lose by joining, and potentially everything to gain. Contact your accountant to sign you up, or if they are hesitant, you can contact a competent one from our directory. Most accountants are familiar with barter networks, but not all are involved for various reasons. Once we familiarize them with our platform and its potential for them and their clients, most accountants become uncharacteristically excited!

My company is already a member of another trade network. Can I use my trade credits to shop in your directory?

That will depend on the quality of the network you work with, and their policies as well. We are very selective in approving reciprocal arrangements. Ask us. If approved, we will collect our trade credit commission from our end of the deal, and your trade broker will collect his cash commission on your end of the deal.

What is the difference between Retail Barter and Corporate Barter?

For our purposes here, we define Retail Barter as individual trades of under $100,000, and Corporate Barter trades as starting at a minimum of $100,000 per trade. We aim to vertically integrate the two realms, as larger corporations spend lots on smaller items, and smaller corporations are often in the market for offerings from larger corporations. Airlines would be a prime example. An airline might trade $500,000 credit for media, yet 100 companies might want $5,000 each in airline credit. Because we use a multi-partner trading system, the media company has more options for spending it's credits, than only in airfare.

Can I resolve some of my accounts payable and accounts receivable with trade credits?

You wouldn't be the first. You can do it yourself, or if you would prefer to delegate an agent, check our other division:

www.creditclearingsolutions.com

Can I trade my gift certificates into the system to pay my balance up?

Yes, provided they have no expiry date, or awkward limitations. Some blackout periods are acceptable if necessary. See DGC regulations concerning issuance and acceptance agreement.***

Is it easy to buy everything we need whenever we want with trade credits?

Sadly, what you seek is not always instantly available, but you would be surprised at how often you can use trade credits to your advantage, for everyday expenses (restaurants, oil changes, the dentist, bookkeeping, etc.), and also for splurging! There are always certain luxuries we may be holding out for, be it a sweet week of heli-skiing, spa visits, cosmetic surgery, or a five star all-inclusive Caribbean vacation. These are the kinds of things you might not have paid for in cash right now, but that are totally satisfying to purchase in trade credits. Everything you buy with YOUR OWN CURRENCY is guaranteed to make you feel smug.

I currently own a trading network, and I am worried about losing my clientele to this one, particularly because my clients don’t like paying cash fees. How can I get involved before they begin to register here without me?

Don’t worry. If you would like to register your clientele here, during a grace period of 60 days from our official launch date, we will grandfather-in existing reputable trade networks, to build our directory quickly. You will receive a referral number and a brokerage account. Direct your clients to fill out a registration form for our platform, identifying you as their trade broker. You must agree to all of our terms, and get paid in trade credits initially. You will be eligible to pool them with us to redeem them for cash on our cash arbitrage website. We know you need cash, too (until we make it officially obsolete!). The rationale is that we will each earn much more of it overall (indirectly) by not directly charging cash in the first place. During our initial launch phase, an invitation is going out to select trade brokerages to join us, before our reps hit the streets and start signing their clients up. If you choose to wait and see, you might lose your membership to us. After all, if you were in their shoes, where would you trade? Don’t say we didn’t warn you!