A new barter-based settlement scheme for small-sized merchants has been invented that would relieve the problem of liquidity for 6 million small business operators. (image credit: 89534781@N00 A.K.A riNux @ flickr)
SEOUL, Korea, Oct 23 (Korea Bizwire) – A new barter-based settlement scheme for small-sized merchants has been invented that would relieve the problem of liquidity for 6 million small business operators. Korea Barter Settlement System said on October 23 it has developed a new settlement scheme called “Extrade Card System” and earned a patent for the idea.
The ingenious system works like this: Suppose that a small business owner, let’s say a flower shop owner, purchased 500,000 won of goods and services for her store with her Extrade card.
All she needs to do to pay back the 500,000-won credit is let other merchants buy her flowers at the same amount with their Extrade cards without any cash changing hands. The flower shop owner ends up completing the transaction at lower cost (since she paid back with her flower inventories) and 500,000 won more free liquidity.
Kim Young-gul, the inventor of the system as well as the chairman of the company, said, “The more merchants within the network, the bigger the benefit accrued to the members because a network with lots of members in it will make it easier to transact with each other. I hope my system could help small business owners alleviate their cash shortage problems and revitalize the mom-and-pop retail business.”
To that end, the company will expand the network nationwide with 168 offices while establishing franchisee networks in every dong-unit area in Seoul. The franchise agency business has a high potential to grow quickly with a stable stream of income for the operator.
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