Collin Ferguson of Xchange Stewards gives showcase the inside tip of his new Business to Business Cashless Trading system that is about to launch here in Portland Oregon.

Showcase: So, tell me what is Xchange Stewards?

Collin-Xchange Stewards is a new commercial trade exchange that offers local, Portland-based businesses a new type of credit so they may engage in cashless trading with other participating businesses.

Unlike using bank credit, which is expensive and something you have to pay back at interest, by joining Xchange Stewards, businesses gain access to an interest-free line of credit, enabling them to more easily move inventories and provide services. As a result, Xchange Stewards membership is a great way to gain new customers, save money, expand your market share, and increase your standard of living.

Showcase: Is your program barter or a local currency program?

Collin-Neither: with Xchange Stewards, businesses are issued trade credit, which allows them to buy and sell their goods and services as if they were using cash. It’s somewhat like an electronic local currency; however, at this time our program is only available to businesses and nonprofit organizations. Xchange Stewards is not barter, because that would involve trading a specific product for another specific product of equal value and without credits. Our system is far more flexible, and advanced.

Showcase:How does this system work?

Collin-Our system is formally called mutual credit clearing. It is mutual because members agree to issue each other credit, and our accounting software moves or “clears” the credit from one account to the next.

For example, let’s say you have a business, such as yoga instruction. First, you would come to us and request to become a member. We would then take you through a short interview to determine your credit limit, much like what you would do when applying for a credit card. Once your credit limit is established, your business is listed in our directory, and you are ready to begin trading.

Now, let’s say you’re contacted by another member business who happens to be an owner of an auto parts store wanting a yoga lesson. If neither of you were Xchange Stewards members, the auto parts store owner would pay for the yoga lesson with cash – assuming s/he had the cash! But now, the auto parts owner pays you in Xchange Stewards trade credit for a yoga lesson, and let’s say s/he paid you 50 credits. Your account now shows a positive 50 credits, which you can use at any of our participating businesses. Let’s say you need print advertising. You would then go through our marketplace, find a printer, and purchase business cards, brochures, or postcards, etc.

Showcase: Is this truly a way to help local businesses make money and or grow their businesses? What’s the catch?

Collin- There’s no catch. Xchange Stewards’ services are completely legal, and you report your trade credit income on a regular IRS tax form 1099-B. Trade exchanges are a well-established and growing business in North America. It is estimated that the industry is growing 8% per year, that there are nearly 400,000 businesses currently participating in trade exchanges, and they are exchanging nearly $8 billion in goods and services annually.

In this down economy, bank credit is really expensive and hard to get. Xchange Stewards membership is very accessible and the credit is much, much cheaper. Immediately upon joining you have increased your “cash flow,” which will allow your business to gain new customers, increase your market share, improve your marketability, enhance your participation in the community, and allow you to do what you love doing more often.

Xchange Stewards will help you put your existing excess capacity into play, and that will absolutely help you grow your business and make more money.

Showcase: How can we get involved?

Collin: On May 1st, 2010, our new website xchangestewards.com will be launched. You can go there to learn more about our services and the cost of participation. Alternatively, you could send us an email at info@xchangestewards.com, or call at 503-701-8750. If you would like to learn more about the industry, please visit the International Reciprocal Trade Association website at irta.com.