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TREEEC - Comitation. The new solution for business processing.

Comitation

The new and game-changing solution for business processing and financing

TREEEC is not only new and better money, but also offers new and path-breaking solutions embedded in it. An example of this is the "Comitation Business" we have developed, which is designed to make cross-regional and cross-national economic cooperation easier, and to reduce and eliminate dependence on bank loans and on required FIAT money altogether. It is well known that suppliers of raw materials and merchandise often require companies to pay in advance, especially for cross-border transactions, or to use letters of credit. Without this, the supplier usually has to take out export insurance to limit his risk. Liquidity or proof of creditworthiness is always required for this. As a result, companies in many countries, including the EU and NAFTA or ASEAN, are prevented from obtaining raw materials or goods for further processing and from doing business. Yet everything would be so simple that companies in all parts of the world could produce and trade with each other. With the "comitation" at TREEEC it’s made easy.

TREEEC MONEY (TRM) is a matter of concern and as an alternative currency it is indispensable for the system. However, without T:XCHANGE, the settlement platform, it would be just any sort of alternative money, as compelling as that alone may be. Using TREEEC MONEY (TRM), T:XCHANGE offers outstanding services, especially for companies that join TREEEC as "business partners" and form the T:BIZCOM community. Let's take a practical look at this.

Business processing and financing for production and trade

In addition to corporate financing in the form of interest-free and perpetual equity financing, TREEEC offers a business processing and financing model for production and merchandise transactions that can be used regionally, supra-regionally and internationally between companies of any type and credit rating - for companies of one country among each other and likewise with suppliers and buyers abroad. At TREEEC, this model is called "comitation" or "comitation business". The term, which is unique to TREEEC, comes from the Latin word comitatus, which means accompaniment. It is therefore a "companion business".

Comitation includes elements of consignment (type of delivery of goods or material in which the supplier remains the owner until it is removed from the consignment warehouse), forfaiting (purchase of receivables with waiver of recourse against the seller in the event of default of the debtor), commission business (business in one's own name for the account of a third party) and, in the case of the manufacture of goods, contract production (directly customer-oriented production on order). However, elements of procurement optimization, payment risk hedging and drop shipping (drop shipment) also play a role. Depending on requirements, comitation is applied in its entire breadth, but individual parts of it can also be used in a modular fashion, as it were.

Smart contracts form the basis for settlement

The contract is concluded in the form of a smart contract between the contracting parties with the involvement of the "accompanying" TREEEC trading house T:INTERTRADE. For example, material suppliers, forwarding agents, transport insurers or warehouse keepers can also be included. For this purpose, an input mask is provided in connection with T:XCHANGE and the account of the business partner, in which the required data is entered and a smart contract is automatically created on the basis of the advanced TREEEC block chain.

A special feature of this is the connection of the Smart Contract with the same number of distinctive units of TREEEC MONEY (TRM) as there are contract partners in the transaction. Thus, the Smart Contract is "issued" and registered at least twice, with the minimum number of two contracting parties, each linked to one unit of TRM. This is a special feature of the system and serves for additional security and protection against manipulation.

It should be noted that the TREEEC MONEY (TRM) "carrier units" for the Smart Contract are independent of the monetary units used for the payments. The Smart Contract is then automatically sent to all the contracting parties involved, each of which must confirm it through its T:ACCOUNT, the complex account associated with T:XCHANGE. In order for the contract to be finally put into effect, T:INTERTRADE must give the final approval and thus set the transaction in motion.

All this is done through T:XCHANGE and in a secure automated process with registration of the smart contract in the peer-to-peer network at all TRUST HOUSES and at all DATA CITADELS. The contract data is fully registered as block chain by the DATA CITADELS, while the singularized contract components are registered and managed "deterministically" at the TRUST HOUSES between two of several contracting parties at a time. Singularizing is done because it makes little sense for a contractual partner who is only involved in a part of the transaction, for example as a supplier for a component, to be aware of the entire contract and all its terms. Moreover, if he has fulfilled his part, he will receive payment regardless of whether the entire transaction has already been finally settled.

When the transaction is executed, the performance and the contract execution steps are validated at each step by T:INTERTRADE and the validity and settlement status are verified by the DATA CITADELS in feedback with the TRUST HOUSES. Only when this is done, payments are also triggered. In the event of changes or delays, the Smart Contract can also be adapted together with the affected contractual partners and updated in the amended form by adding supplementary contract components and registered in the network for verification and validation in the amended and supplemented form. Updating a smart contract in this way enables it to be easily adapted to actual business processes in connection with the advanced block chain.

Comitation business - practical

Let's assume a Turkish furniture wholesaler gets an order from a hotel in Antalya to deliver 300 wardrobes to refurnish the rooms. He can't get credit and doesn't have the money to pay in advance or provide a letter of credit. The customer, who has the money for the purchase, does not want to pay until the goods are delivered. The risk is too great for export insurance, so the manufacturer and supplier in Belgium would not be able to obtain such insurance to cover most of a possible payment default. Even more, he has no capital and cannot get a loan from his bank. The business cannot take place. Anyone who now believes that this is an exceptional case is very much mistaken. This is what normality looks like. And Turkey is economically still a country, even in the current situation, which is quite "normal". What would the whole thing be like in the case of a deal with a company in Ukraine or India? It would be even more difficult or completely impossible. But for TREEEC there is no difference compared to Turkey. The minimum requirement there to make the deal possible is the membership of the Belgian manufacturer of the furniture and the Turkish wholesaler as business partners in TREEEC.

The furniture manufacturer has concluded the deal with the wholesaler at an acceptable sales price with the involvement of the Turkish branch of T:INTERTRADE. T:INTERTRADE is not only responsible for the overall processing and validation of the individual steps, but also for the delivery guarantee. T:INTERTRADE is the trading and handling division responsible for this in conjunction with T:XCHANGE, which has a national branch in each country where TREEEC is present, usually in the form of a separate company as a joint venture with TREEEC's national system partner.


The Belgian manufacturer orders the raw material for production, i.e. wood, fittings, etc., in consultation with T:INTERTRADE. TREEEC may also benefit from purchasing advantages in dealing with the raw material supplier, because other business partners also purchase from him. As a rule, the latter will also be a member of TREEEC. Payment is made by direct credit to the raw material supplier's account.

T:INTERTRADE becomes the owner of the goods delivered to a consignment warehouse of the furniture producer. The producer takes the material from this warehouse at his premises and processes it into wardrobes. This can be done in his own name or in the form of contract production for T:INTERTRADE. The finished wardrobes are returned to the consignment warehouse one by one and the difference between the price of the raw material and the price of the consignment is credited to the producer's account for each wardrobe. These are delivered to Turkey in partial shipments or as a whole on behalf of T:INTERTRADE, usually also with a logistics company associated as a business partner.

Either the delivery is made to a consignment warehouse of the wholesaler there or directly to the end customer. The wholesaler invoices the end customer, but assigns this claim directly to T:INTERTRADE. He immediately receives the corresponding credit of his trade margin, i.e. the difference between the agreed "intermediate trade price" free consignment warehouse or free end customer and the final price on his T:ACCOUNT. To this the sales tax or VAT is added, as far as it is not mutually offset.

Everything else is up to T:INTERTRADE. It is also quite possible that the hotel, if it is also in the system, does not pay for the wardrobes directly at all, but takes advantage of interest-free financing from TREEEC. This in turn takes the form of equity financing or, for example, in conjunction with a contract with a tour operator as a supplementary transaction.

The immediate valorisation in TREEEC MONEY

Thus, this is by no means a barter, but a business transaction in which goods are traded within the economic system and to the outside world at market and market-enforceable prices. Also in the case of additional compensation transactions (a good is not paid for exclusively with money, but is settled as an offsetting transaction in whole or in part with another good or service), there is an immediate "valorisation" and conversion into money, which is always booked in the form of TREEEC MONEY (TRM) and which can be disposed of immediately.

This money can be used free of all restrictions for payments inside and outside the system. If conventional FIAT currencies are required or if payments are to be made in conventional FIAT currencies, TREEEC MONEY (TRM) can also be exchanged for euros, US dollars and other currencies via T:XCHANGE and credited to a linked FIAT money account or, for smaller amounts, paid out in cash. TREEEC holds corresponding liquidity in conventional FIAT currencies for as long as this is still required - generally in every country in which TREEEC is represented.

Comprehensive and cost-effective services provided by TREEEC

TREEEC receives a pre-determined share of the cover spread for comitation transactions, with which all costs of TREEEC and T:INTERTRADE are compensated. This share is much lower than the costs that would be incurred through interest on credit financing, export insurance, forfaiting or factoring. The decisive factor, however, is that TREEEC and the form of comitation not only make the transaction much more cost-effective for all parties involved, but also make it possible in the first place.

This has been simplified here for ease of understanding. A clear set of contracts and forms on the required legal basis for domestic and foreign transactions is provided by TREEEC, as well as clear procedures and rules developed by TREEEC for practical execution. The consideration of tax conditions of the respective countries is also part of it. Each Business Partner has access to all the necessary management software associated with its T:ACCOUNT, and interfaces for its accounting and account management in FIAT Money are there - ready to “come to comitation”.