Countertrade is a process that involves the use of non-cash forms of payment.  When the non-cash form of payment is a trade credit, the process becomes Trade Finance.  The acceptance of trade finance creates two significant value-adds:

Ø Ensures AAG has the maximum flexibility available for structuring

Ø Provides our clients a distinct marketing advantage in global and domestic markets

Trade Credit are credit opened on the books of a trading company in favor of the client.  The trade credit are used on a 'dollar for dollar' cash equivalent basis towards payment for goods and services provided through the trading company.  The use of trade credit is recognized under Generally Accepted Accounting Principles [authoritative guidance is set forth in EITF 93-11 and APB 29].  Typically, trade credit issued by AAG are accepted by the client under three different methods:

Ø As partial payment for an increment sale [incremental sales = incremental value!]

Ø Accepted as payment from a trading company for an impaired asset [recover 100% of the original value of obsolete or short dated inventory, dated receivables, or other under-performing assets = avoiding write-offs!].

Ø Trade Credit is ADVANCED - at no cost - to the client through a pre-spending program [test AAG's ability to supply goods and services benchmarked at pre-existing commercial terms = value without risk!] 

"DON'T THINK YOU USE NON-CASH FORMS OF PAYMENT?  In 2005, there where approximately 14 trillion frequent flyer miles accumulated in the global market place [valued at $700 billion by the Economist] which are being used to purchase, in addition to airline tickets, hotel, taxi, limousine, long-distance, and restaurant, etc. services....Now what do you think?" 

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