Part Cash Transactions
Many businesses still have a percentage of fixed costs which make up a portion of their selling price that Ormita can never replace.
In an ideal world a business owner could offset all of their “cost to replace / cost of sale” against new purchases made on Trade at 100%. Because this is not always possible, businesses with a high-cash component are often reluctant to sell for full trade because they can not utilize all of the new revenue to offset a large enough portion of their “direct-cost-of-sale” within a reasonable amount of time. As a result of this, 100% non-cash transactions are not possible in all instances.
If equity existed and many of the fixed and sundry expense could be offset by a trade component, then trade networks could meet their intended purpose. Unfortunately the reality is that some cash is required where goods or services are difficult to replace even with the savings made through effective trade utilization.
Using a generic “Cost of Goods Sold / Cost to Fulfil Additional Sale” model, Ormita has developed 7 different categories of acceptable trade/cash splits.
These categories represent the minimum percentage trade allowed to be accepted by a business.
