ICON purchases the asset or funds the initiative; transaction type chosen
ICON and the client agree on the purchase price of the asset. Together, ICON and the client determine which of three types of barter transactions best meets goals and objectives. The common elements in each transaction are [1] ICON provides a higher payment to the client than they would receive in the open market and [2] the client makes a counter-commitment to purchase goods and services at market rates through ICON.
Trade Credit: The client receives trade credit as a form of payment for its asset. The credit is applied to future purchases from ICON, typically media such as a broadcast schedule or a digital campaign. This type of transaction is preferred by clients who need flexibility within their spending commitments – for example, companies that have unpredictable business cycles.
Cash: ICON provides cash to purchase an asset or fund a necessary business expense. In exchange, the client purchases a predetermined amount of media (or other goods and services) through ICON for a specific time period.
Blend of Trade Credit and Cash: A client who exchanges an underperforming asset for trade credit may also require a certain amount of cash. ICON works with the client’s internal stakeholders to formulate the right mix of both cash and trade credit as payment.