Idaho's Trade Nicely is working to implement a new bartering-style system where companies can trade their nonperforming assets like debt, accounts receivables and outstanding balances, rather than having to pay to get rid of them, a press release says.
Trade Nicely Co-Founder Jason James said the idea was to remove barriers from moving ahead with what used to be risky finance decisions. For example, he said, some service providers have faced problems with closing deals because customers refuse to pay, saying they have budget constraints. James said Trade Nicely's idea is to pay the service provider directly as part of the deal, with some of the money from collections covering the service and the rest going to the company.
“After speaking with countless executives, we realized that what they want is to simply turn something that is holding them back into something that will accelerate them into a strong financial position, right away,” he said, according to the press release. “they’ve been apprehensive about taking on risks yet know they need to take action. We’ve removed every barrier for them to move forward with confidence.”
Trade Nicely says it pays out in any fiat currency, new clients or a combination of both. The process just involves clients filling out a short form on the company website, signing a non-disclosure form. Then they’re likely to receive an order within 48 hours, the release says.
The service could allow people like accountants to take off their old, charged-up debt from their books and gain cash or new clients. It will also have the benefit of giving them tax advantages as they unload debt.
Jeffrey Hartman, fellow co-founder, said one of the big concerns for companies is that their debt could fall into the hands of a shady collection agency. He said Trade Nicely solves that issue through a “guarantee” that accounts are handled by reputable agencies, helping to manage portfolios after the initial deal to make sure nothing goes wrong, the release says.
Trade Nicely's services could come in handy during the pandemic, which has hit top and bottom lines for even large companies. That has had the effect of forcing those companies to look at how they're going to handle debt which they entered into covenants for, looking to avoid violating the terms of said debt.