The Q4 crunch is akin to a last call to arms. It is a chance for reassessing strategy and forecasts, determining whether you're on track, and taking necessary steps to mitigate risk. It's the time to close any gaps in as timely a manner as possible.
Inventory management is among the most common risks requiring a creative, aggressive solution. The ideal solution should keep you on track to reach your end-of-year goals, safeguard your bottom line, and potentially translate into renewable profit-power. For many companies, Corporate Trade is the single best means to manifest this win-win scenario.
A strategic tool utilized by Fortune 1000 companies, Corporate Trade in simplest terms allows you to restore diminished value on returned, slow-moving, obsolete and unproductive assets or inventory.
- A Corporate Trade company acquires your out of season clothing or accessories, outdated electronics and technology, and perishables.
- In exchange, you receive Trade Credits valued at two to three times the amount you might have earned for your assets via typical liquidation.
- You then combine your Trade Credits with cash to cover business expenses such as freight and logistics, travel, printing and retail marketing, prime advertising space and event space. The product you offload is typically sold to parties out of market, minimizing the competitive impact.
Having the means to literally translate your potential loss on unsold or excess inventory frees you to focus on protecting your business against increased risk and boost the bottom line in a little to no-growth economy.
Bear in mind, you can liquidate more than mere overstock for Corporate Trade purposes. Examples of Corporate Trade in action can also apply to capital equipment, real estate, and pharmaceuticals.
One of Active International's clients sold a piece of equipment valued at $400,000. Active remitted the same value in Trade Credits to the client. Active then sold the equipment to a local smelter. The client used their Trade Credits to subsidize a $2.2 million television campaign.
No losses. Only gains.
When considering Corporate Trade as a solution, some businesses wrestle with the idea of Corporate Trade versus traditional means of liquidating assets such as summer inventory. End of season sales? The product moves, but you know how badly margins suffer, resulting in losses of up to 70% of the ticketed value. Employing this method each year soon catches up to you, chipping slowly but surely into profits.
Instead, use Trade Credits to cure your inventory hangover, and deliver outstanding numbers to shareholders, investors and your parent company.
Timing is crucial, since the present is the best time to begin securing year-end profit and EBITDA.