Benefits

Improved Financial Performance (Back to top of page)

Increase sales: Members can use the Recipco Exchange to secure additional business that may be incremental or simply not possible if they relied solely on cash. Recipco will serve as an alternative channel for the distribution of their goods and services that could result in new customers and where variable pricing can be applied.

Conserve cash: Members are able to conserve cash by using their available capacity to purchase needed goods and services for which they would normally have to pay cash. This is accomplished by selling their available capacity through the Recipco Exchange in return for UTUs that they in turn are able to use to fulfill their procurement requirements. This reduces their working capital requirements and improves Members’ cash flow, balance sheet and financial ratios.

Reduce procurement costs: Many vendors in a Member company's supply chain have available capacity and, more importantly, large contribution margins that Members can take advantage of by using non-monetary trade to complete transactions where they share in the contribution margin of their suppliers. This allows the vendors in a Member's supply chain to carry out a form of discounting without necessarily disrupting their traditional cash business and effectively enabling Members to reduce their procurement costs.

Reduced Risk (Back to top of page)

Credit Solutions:  The Recipco Exchange provides Members a solution to transact commerce with industry segments and specific customers that may not otherwise be possible due to credit risk, thus broadening their client universe.  As long as Exchange Member companies possess UTUs, they can be a viable counterparty independent of their credit risk.  Furthermore, customers who may be in financial distress and unable to pay their accounts in cash, thus putting receivables at risk, may have the ability to pay them in UTUs by selling available capacity over the Exchange and earning UTUs.  Also, customers who are Members of the Exchange and can settle with suppliers in UTUs may be able to make payment sooner, thus reducing collection risk. 

Good Governance:  The Recipco Exchange requires each Member to adhere to a Trade Code, the Trade Rules and the Membership Agreement terms and conditions for trading with other Members.  This, together with the universal Member acceptance and use of the UTU and the allied governance of the UTU by the Recipco Clearinghouse, and aided by the Risk Management Committee of that body, establishes a forum for the conduct of non-monetary-based trade that is disciplined, efficient, transparent, effective and optimally secure against external influences.  Standard reporting and accounting ensures that corporate officers of Member companies can take advantage of non-monetary trade while adhering to the highest standards of corporate governance and complying with Sarbanes-Oxley.

Improved Competitive Advantage (Back to top of page)

Competitive advantage: Members of the Recipco Exchange will have a major competitive advantage over those companies that are not members of the Exchange simply because they will be able to accept payment for their goods and services in UTUs. Exchange Members with positive UTU balances will be highly motivated to purchase from other Members using UTUs before considering a purchase from companies that are not members of the Exchange. This will allow Members to increase sales at the expense of their non-Member competitors. 

Members can also encourage existing trading partners to join the Exchange, thereby strengthening trading alliances.

Increased market share: Recipco enables Members to secure additional market share by using the Exchange to attract new and incremental business from clients who are Members of the Exchange and who desire to purchase a larger portion of their requirements using UTUs that represent their available or underutilized capacity. Only vendors who are Members of the Recipco Exchange will be able to compete for this business.

New distribution channel: By active involvement in the Recipco Exchange, a Member company can access the Recipco membership as a new way to distribute products or services without disrupting existing sales channels.

Protection of cash market price: A company that wants to protect the market pricing for its goods or services can join the Recipco Exchange to offer goods and services at variable pricing to the market without compromising its existing pricing strategy or cannibalizing its current cash business.

Enhanced Operating Efficiency (Back to top of page)

Capacity utilization: The Recipco Exchange provides Members an exclusive private, Internet-based marketplace to trade and obtain value for underutilized production capacity. This alternate distribution channel provides Members a chance to improve utilization of their available capacity. It also provides associated opportunities to maximize return on capital and production investment and to control inventory more effectively.

Multi-lateral trading: The Recipco Exchange, together with the stored value UTU, enables companies to complete multilateral trades among Members and solves the problem of bilateral trade where each party has to want the other party’s goods or services in order to conclude a transaction.

Capture value: Companies listing goods and services on the Recipco Exchange can obtain value for undervalued products, services and assets, including outdated inventories and perishable products such as media, hotel rooms, airline seats, printing, transportation and some forms of energy.

Efficiency savings: Working with Recipco offers Members the chance to replace ill-designed, paperbound processing systems with a streamlined, well-designed approach to non-monetary trade. Consequent efficiencies inevitably lead to costs savings.