Questions & Answers
- How much does being a member cost? Who pays Satachi's bills?
- How is my Satachi account managed and administered?
- What is the legal/tax status of trade bank transactions in the UK?
- I still need cash income. Won't carrying out trades cause me to loose out on cash business?
- What if I want to make a purchase through the Satachi Trade Bank but have not yet earned enough Satachi Pounds myself?
- Can I combine cash and trade payments in one transaction?
- Do I have to do a return trade with someone who sells to me?
- What if the goods and services I need are not available from any other member?
- How do I know what goods and services other member businesses are looking for?
- How do trade payments work?
- Is trade suitable for all types of businesses?
Answer: Like any business, SATACHI does have running costs, some of which have to be met in cash. To meet these costs, we earn revenue in three ways:
- A small, one-off joining fee
- A small monthly administration fee
- A nominal transaction fee on all trades
Our fees are extremely competitive and compare extremely favourably with those charged on most business bank accounts, especially when you consider that we offer interest-free trade credit to our members and guarantee reciprocal business for each transaction you enter into.
Answer: SATACHI acts as a third-party record keeper, and our electronic reconciliation system provides you with instant online access to your balance and a full printed statement of all transactions each month. You do not have to perform any administration or record-keeping.
Answer: SATACHI Pounds are recognised by the taxman (HMRC) as being directly equivalent to sterling pounds. Income received in SATACHI pounds should be recorded in exactly the same way as income received in sterling pounds. Likewise, expenses in SATACHI pounds are tax-deductible in exactly the same way as cash expenses.
Trade exchanges are not a tool to avoid, minimise or otherwise reduce tax liabilities.
Answer: No. SATACHI's goal is to help you utilise your spare capacity or idle inventory. Almost no business runs at 100% capacity all the time and trade deals allow you to utilise that spare capacity to generate new business – business that would otherwise be lost forever.
Answer: Subject to status, SATACHI will make available an interest-free line of credit to Member companies. While we will help and encourage you to repay this through trade as quickly as possible, there is no fixed repayment schedule and no interest charges or other fees.
Answer: No. Business join SATACHI to use their Satachi Pounds NOT CASH.
Answer: No. This is the principle benefit of the SATACHI Trade Exchange System. Your "debt" is to the whole SATACHI Community – so any member seeking your goods or services can enter into a transaction with you.
Similarly, when you have been paid for a transaction, you can spend your SATACHI pounds with any other Member – not just the Member who paid them to you.
Answer: SATACHI provides each member company with a SATACHI Trade Co-ordinator, whose responsibility is to maximise your trading opportunities and to proactively try and ensure that the goods or services you need are available from other Member companies.
When you join the SATACHI Community, your current and likely future purchase requirements will be noted, and your SATACHI Trade Co-ordinator will actively seek out new Member Companies who will be able to offer what you need, if none exist already.
Answer: SATACHI Members are able to advertise both their requirements and their services online. These advertisements are visible to both members and non-members, so that potential members can see the range and quantity of services available, and find potential trading partners before deciding to join.
Answer: When you enter into a transaction with another SATACHI Member, the details of the transaction are entered into SATACHI's accounting system. Once the transaction is complete, trade payment is automatically made in full to the seller.
There are no 30, 60 or even 90 day terms – trade payments are made in full as soon as a transaction is completed.
Answer: Very nearly. Typical users of trade communities fall into three categories:
- Service providers – professional companies such as advertising and media agencies, IT consultancies, design companies, skilled tradesmen, accountants and legal firms. Companies who have fixed overheads and very low incremental costs.
- Manufacturers – if you produce or sell any kind of product, you will probably have spare inventory or surplus stock from time to time. Rather than discounting sales or slowing production, trade exchange allows you to move this inventory and receive goods and services of equal value in return. Part cash/part trade deals can be used to ensure you cover all your production costs.
- Hotels, restaurants, taxi and vehicle hire and transport – empty hotel rooms, restaurant tables and vehicles represent permanently lost revenue – trade exchange allows you to utilise this capacity profitably, and usually results in extra cash business too