TRANSFORM UNDERPERFORMING ASSETS INTO CASH IN 24 HOURS

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YOUR DISTRESSED ASSET PROBLEM

Your company owns many assets. At any given time, they aren’t all performing up to their real cash value. An asset may no longer be useful to you. You may have too much of an asset, such as capital equipment or real property you no longer need, or excess slow-moving inventories that you need to get off your shelves, unprofitable capital goods, surplus real estate, non-strategic business units, liabilities of all types, unwanted receivables or undervalued and distressed assets that aren’t performing or providing acceptable ROI. 
Whatever the form, the asset may have considerable potential value well above market price. To sell the asset at the current market value means you have to record a financial loss or writedown.

WHAT DO YOU DO IF YOU DON’T WANT TO ACCEPT A FINANCIAL LOSS ON YOUR DISTRESSED ASSET SALE?

Traditionally, you could hold on to it, hoping that you would be able to use it or sell it at a higher price in the future. Or, you could sell it off or liquidate it now at a discounted price and record a financial loss or writedown. When businesses liquidate these assets, they typically realize only 10 to 40% of the book value. Instead of liquidating these assets for pennies on the dollar, you can now realize up to 100% of their full value through WTE.

THE BEST WAY TO TRANSFORM DISTRESSED ASSETS INTO CASH AT 3X MARKET VALUE IN 24 HOURS.

With WTE’s Asset Recovery Solution, you can achieve 100% financial asset recovery by selling your assets to WTE at their original wholesale values instead of liquidation value, in the case of merchandise or values typically 2-3 times greater than the current fair market value, in the case of capital goods or real estate. Then, use the cash and trade credits, or combination from that acquisition, to purchase what you do need–whether it’s advertising, goods and services, sponsorships, or other pre-budgeted corporate expenditures.

SUMMARY OF WTE ASSET RECOVERY SOLUTION

WTE helps clients to recover the full book value of their assets by purchasing the assets at their original wholesale costs instead of liquidation value, in the case of merchandise, or amounts typically 2-3 times greater than the current fair market value, in the case of capital goods or real estate.

examples

EXAMPLE #1.

$785M ASSET RECOVERED IN 24 HOURS VIA WTE

One of our clients (a fortune 500 company) had an excess inventory for which their cost is $785 million, and they received offers from potential buyers only as high as $350 million. They were unwilling to take a $435 million loss so they engaged the services of WTE to recover the full value of the assets. WTE paid them the full $785 million within 24 hours for the inventory in exchange for them placing a pre-determined portion of their upcoming expenditure through us.

EXAMPLE #2.

$567M REAL ESTATE PORTFOLIO RECOVERED IN 24 HOURS VIA WTE

One of our client’s corporate real estate portfolio values has been dramatically depressed by a downturned economy due to the coronavirus pandemic. An office tower building they own was no longer needed. It had a book value of $567 million, but they couldn’t find a buyer to buy it for more than $200 million in the current market. The underperforming asset was adversely affecting their cash flow and expense budget. WTE purchased the client’s assets at its original book value of $567 million, thus allowing them to avoid a corresponding $367 million loss and writedown.

EXAMPLE #3.

$2.53B WORTH OF SURPLUS ASSETS RECOVERED IN 24 HOURS VIA WTE

Our client is a multinational energy corporation with operations in more than 180 countries. To improve efficiencies and generate capital to fuel its core business, the company engaged the services of WTE to sell its wide range of surplus assets including drilling equipment, oil rigs, and office furniture. WTE paid them the full $2.53 billion within 24 hours for the surplus assets in exchange for them placing a pre-determined portion of their upcoming expenditure through us.
Asset Recovery Transaction Types
There are three basic deal structures for a successful asset recovery transaction:
1. Trade Credit: Our clients trade their assets for payment in trade credit which they place toward future purchases from WTE.
2. Cash: Some of WTE’s clients prefer to receive cash as payment in an asset recovery transaction. In this scenario WTE simply provides cash as payment to finance a new acquisition, fund business expenses, or improve cash flow. In a cash-only transaction, the client sells an asset at the typical trade multiple of two to three times market value and receives the proceeds in cash immediately. WTE becomes an alternative financing entity for the client. In return, the client enters into an agreement to purchase a specified amount of media, goods, and/or services through WTE.
3. A Combination of Trade Credit and Cash: In some cases, the best deal is one that combines trade credit and cash. WTE works closely with our clients to understand specific needs and interests, and then builds the most effective and efficient plan to address them.

100% CASH PAYMENT VIA STRUCTURED FINANCE ASSET RECOVERY TRANSACTION

An Asset Recovery transaction may be structured to involve cash, known as a structured finance Asset Recovery transaction. A structured finance Asset Recovery transaction is a monetary transaction involving cash and related obligations.
The elements of a structured finance Asset Recovery transaction are as follows:
  1. WTE pays cash to a company in exchange for (i) the company’s asset such as merchandise, receivables, capital goods, real estate, etc.; and (ii) the company’s agreement to purchase entirely for cash a specified amount of media, goods, and/or services (pre-planned and budgeted expenditures) from WTE (at the same commercial terms that the company would otherwise have made); and/or at a minimum, make certain unconditional periodic payments (i.e., if the purchases are not made to an agreed level by the company).
  2. The company and WTE agree that a specified portion of WTE’s invoices will be designated as the “trade factor amount,” which is the amount that will prepay an upcoming periodic payment.
  3. As the company makes purchases through WTE at the same amounts the company would otherwise have spent, the trade factor amounts pre-pay the upcoming periodic payments. Otherwise, the company is required to make periodic payments.
  4. WTE receives the right from the company to assign its rights to receive and collect the trade factor amounts and periodic payment s to a financial institution in exchange for cash which is used to finance the above payment to the company.
A key feature of the structured finance WTE Asset Recovery transaction is that the company receives cash in excess of the fair market value of a particular asset in exchange for that asset and an unconditional obligation to make pre-planned and budgeted expenditures through WTE.
success stories

Sold properties worth $43.5 million in 24 hours

“Most realtors today would agree with me that the economic recession is affecting real estate deals but how Trade Exchange helped me sell out properties worth $43.5 million in 24 hours is something I can’t explain. Great job!”

Scottie Hitchman–LA. California

Sold $29 million worth of steel products in 24 hours

“This is truly an awesome service. My company was able to sell out $29 million worth of steel products in 24 hours through the trade exchange platform. From our records, this is the fastest we have used among similar services. I highly recommend this.”

Elvira Dean–New York City

Hotel fully booked 3 years in advance

“I am recommending your services because of the help which resulted in the sale of all our hotel accommodation for the next 3 years within 24 hours. I am indeed grateful.”

Jaimie Lagrone–Houston, Texas

Fiber Optic Equipment worth $12.3 million sold out in 24 hours

“You guys are doing a very nice job here. All our Fiber Optic Equipment worth $12.3 million were sold out within 24 hours and I am excited to share the experience. Thanks.”

Garnet Enciso

A 5-STAR HOTEL INCREASED REVENUE BY 100X WITHOUT GUESTS.
A 5-star hotel multiplied its sales revenue by 100X and received $640M in income within 24 hours without hosting any new guests during the COVID-19 lockdown.
$1.3B WORTH OF EXCESS INVENTORY SOLD IN 24 HOURS WITHOUT ADVERTISING.
An industrial products manufacturer sold off excess inventory worth $1.3B in 24 hours via WTE without marketing or advertising any product.
A COMMERCIAL BANK RECOVERED $2.4B IN BAD LOANS AT FULL BOOK VALUE IN 24 HOURS.
A Commercial Bank recovered $2.4 billion in bad loans at full book value within 24 hours via WTE.
A STRUGGLING MANUFACTURING COMPANY INCREASED REVENUE BY 5,500% AND REDUCED BUSINESS COSTS BY 87%
A struggling manufacturing company increased sales revenue by 5,500% within 30 days, without any marketing expenses. Also, the company reduced the cash outlay for budgeted expenses by 87% while increasing monthly purchases.
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