FAQs
Why TradeBanc?
For corporates with challenged assets, an AltCurrency transaction with TradeBanc is an alternative to liquidation and discounting. TradeBanc can often provide full value for challenged assets by leveraging arbitrage and aggregation.
How can startups benefit?
Early stage companies seeking additional rounds of seed funding can supplement funding with AltCurrency, which can be used just like cash towards the payment of software development, marketing, media, travel and other expense categories.
What's the process?
Having a new investment, or sidecar investment to align with angel investors or a fund makes a company more attractive to investors. Simply share an overview of the company detailing of use of funds to find out the amount of AltCurrency you can use to offset cash requirements.
How is valuation determined?
AltCurrency investments in exchange for equity are valued at the same valuation as cash investments from current investors. AltCurrency increases a company’s post money valuation, as it is booked as a prepaid expense and considered same as cash.
What is AltCurrency?
AltCurrency (ALTC) is a crypto token on the Ethereum blockchain. The token is used to purchase challenged assets, equity, and excess capacity or production. Companies that receive AltCurrency for assets can use it towards payment for a vast array of products, service, travel or media at the benchmark price they would have paid in an all cash transaction.
How is ALTC better than cash?
AltCurrency is booked as a prepaid expense same as cash, but unlike cash, AltCurrency does not become a taxable event until it is used to pay for products, services, advertising, travel or other expense categories. As both the credit and debit occur at the same time, AltCurrency income and expense is typically a wash.
How can I get ALTC tokens?
ALTC Tokens are available via private placement pursuant to a Token Purchase Agreement. As ALTC is a utility token used to purchase assets, it is not considered a security that is typically limited to qualified investors. Companies and individuals can purchases as few as 500 ALTC tokens at the current market value equivalent of 1.00 USD.
How can I purchase acquired assets?
TradeBanc utilizes AltCurrency to purchase assets including media, inventories, licensing, travel, hotel and resort accommodations, and cruises. Acquired inventories are posted on the asset portfolio section of the website, and may be available for purchase with cryptocurrency, trade, or cash.
Transaction Models
Traditional Corporate Trade (Receivables)
Model : Companies trade excess product, service or capacity for TradeBanc’s AltCurrency which becomes an asset booked as prepaid expenses.
Benefit: Companies receive full value for their inventory rather than liquidation pricing which eliminates charge-offs & write downs.
Cash Residual Corporate Trade (Receivables)
Model : In the case of a large transaction, typically over $50 million, where the asset has a high net cash remarketing value or cash residual such as off-lease vehicles or real estate, companies trade excess inventory, service or capacity for TradeBanc’s AltCurrency, which becomes an asset booked as prepaid expenses. When the asset is remarketed or sold, a percentage of the net cash revenue is paid to the company in exchange for an equal amount of AltCurrency.
Benefit: Companies receive full value upfront to eliminate write down and charge-offs. Then part of the AltCurrency is converted to cash, on a dollar for dollar basis, to reduce the company’s AltCurrency balance by an amount equal to the cash paid to the company.
Trade Finance
Model: Companies offload non-performing or under-utilized assets or future capacity for an up-front credit line of AltCurrency, which is utilized by the company with cash to reduce cash requirements for products, services and/or media.
Benefit: Companies are empowered to pay part of their purchasing and procurement expenses with their own excess inventory, capacity or production.
Conversion
Model: Companies that already have trade purchase credits from a previous sale of products, services or capacity to a corporate trade company can convert those credits to TradeBanc credit to increase the amount of AltCurrency when completing an additional asset sale. The combined credits can be used to reduce cash requirements for purchasing or for mergers, acquisitions, and capital intensive needs.
Benefit: Companies that have unsuccessfully completed a trade transaction in the past now have an opportunity to use their trade credit with TradeBanc’s Trade Credit Utilization group for non-media purchasing, or with the Media Group for advertising and marketing.
Bilateral Purchase Agreement
Model: Qualified companies upon approval can realize upfront cash payment for excess or discounted inventories at full price pursuant to bilateral purchasing commitments utilizing a performance surety bond provided by AON and a bank funding instrument.
Benefit: Companies have the opportunity to sell excess inventories at full price rather than at a discount or sale, and to receive upfront payment in full in cash.
Countertrade
Model: Predominantly for governments and multi-national corporations, countertrade enables offset transactions whereby TradeBanc provides for new marketing and distribution of excess products or production capacity.
Benefit: Empowers companies and governments to pay for needed products, services and equipment, etc. with their own excess agricultural production, excess commodities, hospitality and tourism.
Alternative Capital
Model: TradeBanc partners with angel investors, VC’s and investment banks to provide a trade credit facility for their portfolio companies that will reduce a companies cash requirements by replacing the need for cash with AltCurrency.
Benefit: Minimizes investment risk as TradeBanc enables an investor to put less cash into the deal while maintaining the same equity or debt.
Purchase Offset
Model: TradeBanc sells AltCurrency to a company, which they can use to reduce their cost of an acquisition or major capital expenditure.
Benefit: Reduces cash requirements by substituting AltCurrency for cash typically at a 30% discount.