Complementary Currency 

When members conduct a transaction in the GETS Trade Marketplace they use a digital unit of account known as Trade Credits or Trade Pounds AKA complementary currency  this currency is an Enterprise-backed Trade Credit Obligation (TCO), which is based on a financial architecture known as a Peer-to-Peer Mutual Credit Clearing System. In the case of the GETS Trade capacity exchange system it is a closed loop system where the Trade Credits are issued and backed by Local Businesses similar to the Swiss Wir Bank.

WIR, ​The Worlds Oldest Complementary Currency

The WIR Bank Complementary Currency system has proven to be a stable financial economic system since 1934 when it was implemented by the very successful WIR Bank of Switzerland, which now supports nearly 20% (62,000) of Swiss SMEs trading $6.5 billion as of 2005 of commerce annually  The WIR Bank's currency code is CHW as designated by ISO 4217

Characteristics of getslocal. Trade Credits 

The Trade Credit is: 

  • Subject to VAT
  • Subject to all taxes
  • Entered into company accounts the same as a sale or purchase
  • A local and international currency
  • Is pegged to £1.00 in the UK and to the $1.00 Dollar in the USA
  • Can be borrowed interest free* - goods and services only
  • Can be paid as dividends, bonuses or salary
  • Can be used to purchase Premium Points

*Subject to application and review by GETS Trade

Mechanics of the Trade Credit

Trade Credit transactions:  

  • Invoiced - as cash
  • TAX - payable in cash
  • Payment - guaranteed**
  • Account entries -same as cash
  • Payment method - Trade Credits
  • Terms of payment - in advance**
  • Warranties and guarantees - between two parties as in cash transactions
  • Medium of exchange/payment - Online Electronic Transfer
  • Credit Line - 0% interest, with repayment terms in extra sales**


Accounting for Trade Credit Transactions

In accordance with General Accepted Accounting Principles (GAAP), members must record all transactions at fair market value.
The member creates an additional bank account in their General Ledger to record all trade credit transactions.
Similar to a cash sale, when a sale occurs, the revenue account is credited and the trade credit account is debited.
When purchases occur, the asset, or expense, account is debited and the trade credit account is credited. The trade credit account will equal the balance of your GETs Trade statement at the end of the month.