Additional money is being used in countless countries on our planet. They make the economy much more resilient by helping to clear swaps between people and businesses. We thought we needed to do more to get to know the principles and systems that make the lives of millions of people more predictable. The following description of the new money to read a new book on the world, you can be free to download here or can be ordered here.
The crisis that began in 2008 in the financial and banking world soon turned into a major employment crisis. Much of the world economy and most of the jobs in the private sector are provided by small and medium-sized enterprises (SMEs). The survival of many of these companies was threatened by the cash flow problems of the downturn.
Credit institutions when they need credit
Today’s paradigm is that SMEs rely on banks and other credit institutions when they need credit. The tightening of credit conditions has a negative effect on the whole economy, but especially on the small and medium-sized enterprise (SME) sector. These companies face particular challenges in order to continue operating, especially in times of economic downturn.
Large companies, which can work up to 90 days in payment terms, are under great pressure from small and medium-sized enterprises to pay off their debts in less than 30 days. When banks do not provide bridging loans at all or tighten their terms, SMEs are trapped in a deadly cash flow . This has long been a problem in developing countries, but is now increasingly critical in developed countries.
The Commercial Credit Circuit
Like WIR, offers another way of providing liquidity at a much cheaper price than traditional methods. This is ensured by the mutual lending system of small and medium-sized enterprises, which includes the clients and suppliers of the companies and is assisted by an insurer.
In exchange for a smaller fee, the insurer counteracts the business agreements to be concluded to guarantee that all parties to the transaction will have access to their money. Unlike WIR, C3 is fully convertible to national currency at any time, making it easier to attract companies that would otherwise be reluctant to use additional currencies.
How It Works?
Let’s say a theater chair manufacturer receives an order for 100,000 chairs from a reputable company that pays for the goods on delivery by check. The manufacturer (Company A) manufactures the chairs with his own employees, while he orders the necessary materials from a supplier (Company B).
Everything is available to start production, except the money paid to the workers and Company B. Normally, Company A would have to take a bridging loan, which may or may not be repayable, depending on the current business environment. C3 offers another way of financing.