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It’s important to note, however, that trade credits are not valued at 100 percent of the goods you’ve bartered. That is, if you have $1 million worth of goods, the barter company may give you $600,000 in trade credits, he notes.
In addition, if you want to use your trade credits for, say, transportation services, the transport company may accept 15 percent in trade credits and 85 percent in cash. “The challenge is to smartly liquidate your trade credits,” says Parsons. “Someone in a cataloger’s operation needs to keep track of those barter credits.”
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- Companies:
- GJM Associates Inc.
Reported Donna Loyle
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