Traditional Corporate Trade (Receivables) : Companies trade excess product, service or capacity for Intertrade receivables trade credit which becomes an asset booked as prepaid expenses.
Benefit: Companies receive full value for their inventory rather than pennies on the dollar liquidation pricing which eliminates charge-offs & write downs.
Cash Residual Corporate Trade (Receivables) : 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, companies trade excess product, service or capacity for Intertrade receivables trade credit 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 trade credit.
Benefit: Companies receive full value upfront to eliminate write down and charge-offs. Then part of the trade is converted to cash, on a dollar for dollar basis, to reduce the company’s trade credit balance by an amount equal to the cash paid to the company.
Trade Finance : Companies offload non-performing or under-utilized assets or future capacity for an up-front credit line of cash equivalent trade purchase credit, 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 : Corporations that already have cash equivalent trade purchase credits from a previous sale of products, services or capacity can convert these credits to Intertrade credit which 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 Intertrade’s Trade Credit Utilization group for non-media purchasing, or with the Media Group for advertising and marketing.
Bilateral Purchase Agreement : Companies 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 : Predominantly for governments and multi-national corporations, countertrade enables offset transactions whereby Intertrade 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 : Intertrade is partnering with 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 cash equivalent credit.
Benefit: Minimizes investment risk as Intertrade enables an investor to put less cash into the deal while maintaining the same equity or debt.
Purchase Offset : Intertrade sells cash equivalent trade credit to a company which they can use to reduce their cost of an acquisition or major capital expenditure.
Benefit: Reduces cash requirements by substituting trade for cash at a 40% discount.