Buying cash generating equipment with Trade Dollars is another way to bring Trade Dollars back to cash. One of our clients recently bought a $5,000 color copier on trade. He deducted the purchase price as a business expense, and now believes he will be able to earn the full price back in cash within a year by selling color copies for cash.
Another client, a paging company, buys pagers made by a Florida company at wholesale prices for Trade Dollars. The paging company marks up the prices, sells the pagers to its customers for cash, then earns cash for the monthly paging service as well. Meanwhile, the Trade Dollars it uses to buy the pagers comes from a line of credit from Contracard which it repays by selling paging service on trade to other Contracard clients.
Buying more products and equipment are two ways to generate more cash by investing Trade Dollars in a business. A third way is to invest in what represents most businesses' most important asset - its employees.
Sales and production incentives can be purchased on trade and tied to cash profits, either through more orders or increased efficiency. Incentives can be either competitive or cooperative. Sales incentives are usually competitive, while production incentives are more frequently cooperative. In either case desirable incentives such as travel, gifts, and dining are usually available for Trade Dollars.