Under performing assets can suck the life out of your business. They can take up inventory space, eat up revenue, and add unnecessary weight to your portfolio.
Divesting from and/or liquidating underperforming assets allows you to shed some extra fat from your business. It frees up space and gives you more room to focus on the more important aspects of your business and your brand. Furthermore, it is a great way to save money in the long run.
However, selling assets can be difficult. Large assets like stocks of old clothing, industrial machines, vehicles, large amounts of food, and the like may take you a while to find a buyer. Moreover, the longer it takes you to sell these assets, the more they are exposed to depreciation.
Corporate trading allows you to liquidate your assets immediately in exchange for something you can utilize in the future.
What Is Corporate Trading?
Corporate trading or corporate barter is defined as the “exchange of an asset for goods or services” (Icon International Inc.). Instead of selling an asset outright, corporate trading allows you to swap your underperforming assets for goods or services that you need.
Corporate trading firms like Sherwood Integrated Solutions purchase your assets in exchange for future goods and/or services, usually an integrated media campaign. Integrated media includes television, digital, radio, and other similar channels.
How Does Corporate Trade Work?
Corporate trade begins with a corporate trading firm and a business working in unison to identify a problem that needs solving or an opportunity that can be seized. Most corporate trades involve the exchange of unwanted assets or obligations for a valuable good or service.
The corporate trading firm acquires the unwanted assets in exchange for trade credits worth the current value of the unwanted assets. These trade credits are essentially an IOU for for future goods or services, often related to digital marketing and other media-related activities. However, trade credits may also be used to purchase other services like transportation, freight and logistics, and production.
By the time the business is in need of a service aligned with the corporate trading firm’s competencies, it can claim services worth the cumulative amount of the trade credits. If the service costs exceeds the amount of trade credits, the business can opt to settle the remaining amount in cash.
How Can Corporate Trading Help My Business?
Corporate trading takes the problem of liquidating unwanted and underperforming assets off your hands. Also, it lets you get rid of these assets before any depreciation sets in.
A successful corporate trade helps businesses gain opportunities in exchange for essentially nothing. Not only does it help you get rid of assets that are bleeding your business dry, it also gives you valuable services in exchange for assets that you were looking to get rid of in the first place.
If you’re unsure how to go about corporate trading, SherwoodIS.com can assist you in identifying underperforming assets that you can exchange for services that your business needs.