How to choose the right trade network?
Trade can be a valuable tool for any business however the value of any trade credit is only as good as the company managing it. Research shows that almost 86% of new exchanges fail within their first few years.
Many exchange owners “steal from the bank” by operating inflation-causing, trade-slowing, deficit accounts which they use to fund their own purchases but have no way to repay. Be sure to ask questions, do your research and never hand over money until you know that you have a way (and a plan) to spend as well as earn.
- Ask to see their Corporate Profile.
- Do an internet search on the Company, its Management and its Owners.
- Ask to see their marketing materials.
- Find out about the financial management skills and qualifications of the owners.
- Assess the integrity of other members.
- Find out how they assure you can spend.
- Ask if they charge a fee when you buy, sell, or both.
- Have the exchange explain their credit management policies.
- Request a copy of their policy on "deficit accounts".
- Make sure you can sell, but that your income won't exceed your ability to purchase.
- Find out how to perform transactions.
- Investigate their accessibility and office hours.
