Leverage Tradebank to Pay Your Creditors.

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Accounts Payable Trading

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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 you to run your business more effectively and profitably, then consider leveraging Tradebank to pay the creditor in trade.

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Steps to clearing the debt:

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

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The vendor would be signed on as a member of Tradebank ifnnot already a member.

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The Trade Dollars you currently have would be paid againstnthe debt (fees due prior to transfer).

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The additional business would be sent to you to settle the remainder of the debt (within a short period of time). The remaining debt would be settled in Trade Dollars (fees due prior to transfer).

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Note: Creditors may request a premium of 10-20% be paid to convert existing cash debt to trade dollars. (E.g. to convert a $10,000 loan to trade they want an additional T$1,000). Alternatively, some creditors are only willing to discuss a trade dollar payment as long as a % is paid in trade 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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