ACCOUNTS PAYABLE TRADING


 

 

If you are having difficulty getting past some payables (be they to a primary supplier / landlord or another vendor) and clearing the debt would enable to run your business more effectively and profitably, then consider the following opportunity. 

 

For this to work it is assumed that you either already have enough TRADEdollars to satisfy the debt or will be able to earn them quickly. 

 

Steps to clearing the debt:

 

1)      Contact your broker and share some details (at least the supplier and the approximate amount).  Next, determine who will be making the first approach to the creditor. Note that calling the creditor first gives the opportunity to present a possible solution as it is evident that you are trying to act in good faith.  In the case where the Tradebank representative is calling first, you should still contact the supplier to vouch that Tradebank is speaking to them on your behalf.

2)      The vendor would be signed on as a member of Tradebank if not already a member.

3)      The TRADEdollars you currently have would be paid against the debt (fees due prior to transfer).

4)      Additional business would be sent to you to settle the remainder of the debt (within a short period of time).

5)      The remaining debt would be settled in TRADEdollars (fees due prior to transfer).

 

Note: Creditors may request a premium of 10-20% be paid to convert existing cash debt to TRADEdollars.  (e.g. to convert a $10,000 loan to trade they want an additional T$1,000).  Alternatively, some creditors are only willing to discus a TRADEdollar payment as long as a % is paid in CDN dollars. (e.g. settlement is $2,000 and T$8,000 with the $2,000 due immediately).  It is a good idea to discuss this ahead of time with your broker / regional owner and decide if you want to offer an incentive to convert the debt.  In order to make this determination you would have to look at your cost of goods sold and the positive effect of getting the debt cleared.  It may not be necessary at all.  The creditor might be content with being paid the original debt full trade.  However, offering the incentive may help to preserve the business relationship. 

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