Frequently Asked Questions
What is Trade Credit?
Trade Credit is a form of payment that a Corporate Barter company uses to purchase (usually underperforming) assets from their clients. The amount of Trade Credit that a Corporate Barter company usually pays for an asset is three times its fair market value in the open market. Clients then spend the Trade Credit as part-payment for media and other services via the Corporate Barter company.
What can I spend Trade Credit on?
Trade Credit can be spent to part-pay for a wide variety of goods and services – these are the most popular:
- Freight and Logistics
- Travel and Events
- Other Business Services
Will I pay more when I spend Trade Credit?
No, for every $1 you have in your Trade Credit account, you can purchase $1 in value of media, printing or whatever you choose to spend it on. The total amount you pay is the same as if you were paying 100% in cash.
Can I spend my Trade Credit outside Australia?
With Active, yes you can. You can spend your Trade Credit in any country where Active has an office, and there are currently 14 countries in the Active network.
How can I track how my Trade Credit is used?
Trade Credit statements are sent to clients on a monthly basis.
How does Active make its money?
The short answer is that we leverage relationships. What this generally means is that we take long positions in media space, whether by investing with a media owner or funding a business expense such as their annual conference. They pay Active in media space at a cost-advantaged rate. We also generate cash by taking on companies’ unwanted stock in return for Trade Credit. Our clients are companies that might have excess stock to sell and who come to us because we offer them a greater value in Trade Credit than they would make in cash (typically three times). When they spend their Trade Credit through us – usually on media space – we make a profit on that transaction. So, we make money when our clients spend their Trade Credit.
Spending Trade Credit in Media
Where can I spend Trade Credit in media with Active?
Will I pay more if I spend Trade Credit?
No. Your media buying agency determine the pricing as normal.
Will I get low quality or unwanted media if I spend Trade Credit?
No. Your media agency determine the quality as per normal.
So nothing changes to the price and quality if I use Trade Credit with Active?
That’s right. In fact, the only role Active plays is to negotiate how much of the advertising is paid for in cash and Trade Credit. Your agency does everything else as normal.
Does using Active hold up my buying process?
No. We are able to work to last minute turnarounds to ensure you can spend your Trade Credit.
Do you affect what I pay my agency?
No. We only work on the net amount of any media we trade and you pay your agency as normal.
Can I pay you through my agency?
Yes. We can invoice via your agency. We are entirely flexible to suit your needs.
Does working with you affect my audit?
No. Your agency will be audited as normal.
Is it any extra work for me?
The only extra work is the time put into setting up a deal. After that it is all down to your buying agency and Active to take care of everything else and just keep you informed.
Is it any extra work for my agency?
Yes, but it should be minimal and only involves communicating effectively with Active to make sure we make the most of every opportunity for you to spend your Trade Credit.
Spending Trade Credit in Travel and Events
What kinds of things can I spend Trade Credit on in Events and Travel?
- Travel Management
- Conferences / Events
- Incentive Trips
- Team Building
Spending Trade Credit in Printing
What kinds of Printing can I spend Trade Credit on?
- Visual Merchandising
- Retail Marketing
- Point of Sale
- Displays and Fixturing
- Large Format Print
- Warehousing & Logistics
- Industrial Design
Spending Trade Credit in Freight & Logistics
What type of Freight & Logistics can I spend Trade Credit on?
- Couriers (Domestic & International)
- International (Sea & Air)
- Domestic (All Types)
- Specialised (Refrigerated)
- 3PL Warehousing