How much additional cash could be made available for your business by trading via the Tradebank Network?

To estimate, use the following formula:

T$ x (GM – C) x (1 – T)

Where:

· T$ is the value of Tradebank Dollars you expect to earn and spend by trading via the Tradebank Network.

· GM is your company’s gross margin of profit

(gross profit divided by sales).

· C is the Tradebank commission charged for buying and selling products and services.

· T is the applicable tax rate for your company.

For example:
· T$ = 200,000

· GM = 70%

· C = 10% (0.0% for each sale and 10% for each purchase)

· T = 40%

Thus, the additional cash that this business can expect to generate is:

200,000 x (.70 – .10) x (1 – .40) = $72,000

Don’t Stop Here

More To Explore