Frequently Asked Questions
Q: What is the International Credit Reserve Exchange?
A: An alliance of businesses and professional people like yourself, who exchange their goods/services for cash and credit dollars for the goods/services of other members.
Q: Why should a company or individual join a Credit Reserve Exchange?
A: The Credit Reserve Exchange can send you business during your non-productive time or help decrease your excess inventory. You can swap this excess (your unused products or services), for ICRE credit dollars and some cash. When you spend these credit dollars (that would normally require cash) you free up your cash dollars.
Q: As a member, how do I benefit?
A: You increase your business volume by gaining new (extra) customers who are fellow members of the "Exchange", ICRE directs these other members to your business as they request the product or service you can offer. Also, you decrease your expenses by meeting many expenses with credit dollars.
Q: How does ICRE put a price tag on the goods and services credited through the system?
A: Members are requested to price their products and services at fair market value, the same as if it were a cash transaction.
Q: Exactly how does ICRE work?
A: Members with a need for your product or service are referred to you by ICRE. When you fill their need, you earn credit dollars in the system. You may use those credit dollars when you need any of the hundreds of goods and services available in the exchange.
Q: Do you mean I can use a Credit Exchange and still make a profit?
A: Yes! You exchange your goods and services through the Exchange and your profit margin is the same as in a cash transaction.
Q: How will this effect my present cash business?
A: You maintain your current cash business and profits. Membership in ICRE is designed to use the new profit you accumulate in credit dollars to decrease your cash expenses. That means you greatly increase your cash profit! ICRE means "extra" business.
Q: What if ICRE doesn't have what I need?
A: We'll make every effort to get it. We attempt to have in the "exchange" the products and services necessary for day-to-day business operation. When a member has a particular need which cannot be filled by ICRE, we try to go outside and sign up new members.
Q: What are the qualifications of membership?
A: If you have a product or service to sell regularly, have good referrances and you need extra business, you qualify. You may also use the exchange as an individual selling miscellaneous goods or purchasing credit dollars at a discount through the Exchange.
Q: What is the future of Credit Exchanging if the economy gets better?
A: While Credit Reserve Exchanges do well in recessions, they do even better in prosperous times because there is more cash flow to free up.
Q: How can members protect themselves from "over-exchanging"?
A: Balance exchanging until you learn to spend existing credit dollars. We encourage members to go the Exchange Network Meetings and learn how to get the things they need for credit dollars or contact their broker for more information on obtaining a line of credit in order to spend first.
Q: What is the difference between Barter and a Credit Reserve Exchange?
A: Barter is a back-to-back exchanging that requires both parties to be in need of the other's goods or services. A Credit Reserve Exchange exchanges goods and services for part cash and part credit dollars which can be used for purchases from other members within or outside the exchange, similar to a credit card company. You are allowed to charge part cash to cover your costs of goods sold as long as your credit dollar account is in the positive.
Q: How does the IRS stand on Credit Reserve Exchanges?
A: Because of the monthly statements and other information, the IRS feels that participants affiliated with an organized Credit Reserve Exchange have a better than average record of tax compliance. Call us at (314) 962-9222 to request more detailed information.
Q: How much Credit Exchanging should a company do at first?
A: A business should use a Credit Reserve Exchange when it doesn't interfere with normal cash business (nonproductive time). A business should charge cash for their "variable cash cost" until they can spend their credit dollars faster than they can earn them.
Q: What are some typical company expenses offset with a Credit Reserve Exchange?
A: Advertising, printing, legal, accounting, employee expenses, auto repair, dental, computers, copiers, restaurants, etc.
Q: How do credit dollars free-up or save cash?
A: ICRE dollars are extra business that comes to you as a result of your membership and networking in the exchange. You are spending credit dollars where you would have spent cash. Happily, you can spend that cash freed up somewhere else.
Q: How long has this type of exchanging been going on?
A: There are credit exchanges in New York and California that have been in business over 40 years.
Q: What is meant by the terms "Part Cash" or "Part Credit Dollars"?
A: ICRE uses this to help new businesses restrict credit exchanging until they learn to become more effective credit exchangers. We urge members to charge only their "variable cost" or "costs of goods sold" in cash.
Q: What is meant by "cash conversions"?
A: This process involves buying a product or service with credit dollars and selling it for cash. You can also cash convert by referring cash business to fellow ICRE Members.
Q: How is the accounting done?
A: A statement is mailed or on line each month which shows all transactions for the month, i.e. all your sales, purchases, and commissions due ICRE.
Q: How is a transaction handled?
A: We use a credit dollar voucher form similar to a credit card transaction. Both the buyer and seller sign this voucher. The buyer is billed the 12% transaction fee at the end of the month. These vouchers enable us to debit/credit accounts and the amounts and types of transactions will be referenced every month on your statement. Exception: any transaction of $500.00 or more the buyer is requested to send in the 12% fee within 7 days.
Q: What precautions should be taken when doing business with an ICRE member?
A: Check references & treat the member the same as you would in a cash transaction.
Q: What about taxes?
A: Treat your ICRE dollars the same as cash when it comes to taxes. Call us at (314) 962-9222 to request more detailed information. A 1099b will be issued at year end for your reporting. Since 1982, ICRE has fully met the requirements set up under the TEFRA ACT that governs Trade Exchanges.
Q: If I had a list of 10 product/services I needed how many can I expect to get?
A: Approximately 5 to 6 at first. You will be able to get more items as new members join the exchange and your knowledge of the credit reserve business increases.
Q: How do I know what goods and services are available?
A: Consult your ICRE online Directory or call ICRE at 314-962-9222.
Q: What if I want to make a purchase when ICRE is not open?
A: Our exchange is on line 24 / 7. Obtain an authorization at any time.