The document discusses trade credits, an alternative exchange medium used by reciprocal trade organizations. Trade credits allow users to monetize unused assets and capacity when cash is scarce. J. Philip Group helps companies convert unused trade credits into cash by leveraging their industry experience and relationships with vendors. They work on a performance-based model to retire trade credits for clients and achieve a profitable ROI. Interested companies should contact J. Philip Group to explore opportunities to put unutilized trade credits back to work.

1. Trade Credits ~
Use of Barter Exchange
Re-monetizing Unutilized Assets in
Non-Media
Non Media Categories
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2. Trade Credit Industry History
Trade Credits are an exchange medium used within reciprocal trade
o ga at o s
organizations. Trade c ed ts a e not a cu e cy but a e t e estab s ed
ade credits are ot currency are the established
tender type for trade credit users. There are a number of well-established,
reputable exchanges doing thousands of transactions each year. It has been
established with the Internal Revenue Service that for reporting purposes,
one trade credit is equal to one U.S. dollar. Commercial exchanges use IRS
form 1099B to report earnings in this tender type
type.
This industry is a form of barter exchange also called reciprocal trading. The
rule of thumb is that the use of trade credits is more attractive in a slow
economy. Wh cash is scarce, businesses are more willing t consider th
When hi b i illi to id the
use of alternative methods of obtaining the things they regularly use in their
business. Trade Credit allow users to monetize stale or difficult assets as
well as unused capacity.
The U.S. Congress passed the barter tax provisions of the Tax Equity and
Fiscal Responsibility Act of 1982 (TEFRA) to recognize barter exchanges on
a par with banks and credit card companies as “third party record-keepers” of
the financial records of other taxpayers All U S barter exchanges now
taxpayers. U.S.
submit to the tax authorities the annual total of the barter sales of all their
clients.
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3. Trade Credits: Why Do Companies
Struggle to Turn Them to Cash?
The Primary reason companies struggle with Trade Credit conversion is that hard
working employees with numerous other responsibilities just don’t have the time,
the knowledge or motivation to successfully convert Trade Credits into cash.
Many Trade Credit Deals were negotiated by individuals in one are (i e Finance
(i.e.
or Legal Department) but the expectation is that another area work with them (i.e.
Purchasing or Sourcing/Procurement.)
J.
J Philip Group provides a highly motivated very focused and industry
motivated,
knowledgeable entity whose function is to retire the Trade Credits with which you
are currently struggling.
This is really no different than “out sourcing” other business requirements that fall
outside your company’s core competencies. Our clients tell us that our services are
company s
similar to outsourcing IT functions you are unable to implement yourself.
In other words, you have the need but not the knowledge so you hire a professional to
accomplish your goal.
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4. Trade Credits: How They Work in
Non-Marketing Applications:
Example: Assume a company has unmonetized assets in the form of
distressed merchandise, fixtures, warehouse equipment, or even unused
hotel room nights valued at $3 million dollars (an other kind of asset is
room-nights al ed dollars. (any
appropriate as well.)
The company NEEDS to eliminate this unneeded asset and recapture
the investment. They can either sell the unneeded assets to jobbers for
pennies on the dollar, write them off and dispose of them, or “sell” them
to a Trade Credit Exchange Company for Trade Credits.
The Trade Credit Company takes possession of the merchandise,
fixtures, warehouse equipment, or any other excess / unneeded asset,
and issues the customer a negotiated dollar value in Trade Credits.
The Company can utilize these newly acquired Trade Credits to reduce
the cash outlay for goods and services using our time-tested, successful
methods.
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5. Trade Credits ~ How J. Philip Group Will Assist
You in Turning Credits Back Into CASH:
J. Philip Group has years of experience converting millions of dollars of
p y
credits back into cash for Fortune 500 company.
By using our tried-and-true methods, participating Vendors are winners
as well; this is not an adversarial relationship.
Our years of industry experience, knowledge, connections, skill sets and
tremendous focus allows us to accomplish what you may not be able to
do for very understandable reasons.
We work on a small retainer against a performance bonus for Trade
Credits converted into cash. Depending upon the size of your credit and
the resulting upside potential, the ROI on our performance can be a
significant and highly p
g g y profitable option for y
p your company.
p y
An initial telephone discussion will help determine the possibilities. Don’t
let another month go by without exploring this intriguing opportunity!
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6. Summary
y
Trade Credit Dollars = one U. S. Dollar. They are
cash and must be respected as cash. If your
company has Trade Credits languishing “on the
shelf”, let J. Philip Group help you get them to work
reducing your cash outlay for goods and services!
During a tough economy, the opportunity to utilize
Trade Credits grows
grows.
For further details please visit our website at
www.jphilipgroup.com or contact Phil Leichliter at:
Phil@JPhilipGroup.com
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