TradeBanc’s Corporate Trade Model
In TradeBanc’s corporate trade model, large companies as well as early stage startups purchase products or services through accounts receivable (AR) trading, relying on TradeBanc to purchase their underperforming or illiquid assets, excess capacity or unsold inventory with its AltCurrency Token credits and subsequently to fulfill the credits by providing the products and services requested by the seller.
TradeBanc, a corporate trade company acts as a principal in the transaction, buying and selling for its own account and becoming the purchasing agent for clients to use their AltCurrency in lieu of cash. There are about ten corporate trade companies doing about 95 percent of the $85 billion corporate trade transactions. But most corporate trade companies are media based, and none other than TradeBanc utilize their own asset backed token and blockchain technology to facilitate transactions and create liquidity.
Corporate Trade Reinvented
Corporate trade as it is practiced today in its legacy format originated in the late 1960’s and hasn’t significantly changed in almost 60 years. When it originated, corporate trade 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.
TradeBanc reinvented corporate trade by becoming much more than just a profitable alternative to markdowns or liquidation and providing a valuable way to expand a company’s advertising and marketing plan using the leverage of a trade transaction. TradeBanc also helps companies monetize equity, excess production, unsold capacity, and has the capacity to facilitate foreign trade with countries that have excess product production, capacity and services to exchange but no hard currency to pay for their requirements.
With TradeBanc, examples of corporate trade are numerous: unfilled trucking on return trips, idle plant equipment, excess maintenance inventory, years on a lease when a company moves, and even equity in an early stage company. Privately held companies can sell restricted stock for AltCurrency to offset marketing costs that will help build name recognition and market share, to build pre-paid expense reserves or to purchase hard assets such as real estate.