How the clearing house works
- Listing. Anyone with inventory can take part. Each listing is one product in identical units, at a price that is always shown. You can change the price or the quantity at any time, except in the middle of a trade.
- Buying. Any member can buy any listing, and the seller cannot refuse. You can buy as long as your untied inventory covers the purchase. No money changes hands.
- If the seller owes nothing, the same value of your inventory is tied to the seller.
- If the seller owes someone, your purchase settles the seller’s debt, oldest first, and your goods go straight to that creditor, who chooses which of your listings they take.
- After 6 months, any tied value not yet settled by others buying from you is paid in cash, in 3 equal monthly instalments, directly to the member you owe.
- If an instalment is missed, the rest is taken in goods: the member you owe chooses it from your listings.
An example
1. A buys €10.00 of goods from F. F owes nothing, so €10.00 of A’s inventory is tied to F.
2. B buys €10.00 of goods from A. A owes F, so B’s purchase settles A’s debt. €10.00 of B’s goods are now due to F, and F chooses which of B’s listings to take.
Result: everyone gave €10.00 and received €10.00, and no money changed hands.
If nobody had bought from A within six months, A would have paid F €10.00 in cash, in three monthly instalments of about €3.33.