Ten things you must know about Parity
1. What is Parity?
Parity is a network for independent businesses in the Jewellery Quarter with its own local currency. Our digital platform facilitate networking and allows members to promote their business, connect with new local customers and increase revenue. Members can also benefit from using a local currency, called Parity, and accessing an interest free credit line to support cash flow and purchase expenses.
2. How is it possible interest free credit?
The credit facility in Parity is similar to an overdraft. Members access an interest free credit line, an allowed negative balance that can be used to buy from other businesses within the network. This negative balance can only be paid off through sales to other members and it is accounted within a local currency.
3. Is there a deadline to recover a negative balance?
No. In Parity there is no interest, no fees and no deadlines. As long as you pay the monthly membership fee your account is allowed to stay negative. This system is sustainable because you have to remember: a negative balance means a positive one somewhere else in the network.
4. How do you make money out of it? Just from memberships?
Exactly; and we offer more than usual business networks. Parity is a network with a local currency, it offers interest free credit and more. Our membership indeed includes also personal brokering, meaning that Parity works to boost your sales and promote your offer within our community.
5. How does this currency work?
This currency is just a unit of account and cannot be directly converted to pound or withdrawn out of the network. It is used to count the amount of transactions happening between entrepreneurs within Parity. Businesses can use the overdraft by buying goods and services from other members and, rather than pay with pounds, they can use Parity. Prices within the network don’t change and 1 Pounds is always equal to 1 Parity. Going negative in your Parity account results in an “I owe you” to the community and this has to be repaid by selling into the network goods or services worthing the same amount.
6. Is it legal?
Yes. You can believe or not but money and credit are not a central bank’s monopoly. You can produce your own! Look around you. How many local or crypto currency can you see? Even Facebook is about to have its own. Money is always more an agreement between community’s members and within Parity every business accept to pay and be paid in Parity. Our currency is a unit of account to calculate if your balance is in deficit or surplus towards the network. For the Financial Conduct Authority and the current UK regulation this is legal as long as every transaction is tied to goods and services exchanged and as long as it is not withdrawn out of the network.
7. How do I find other entrepreneurs?
Parity is #digitalnetworking. In your life you have already experienced how technology and digital platforms have improved your way to connect with others. Think about Whatsapp and Facebook! Parity offers a digital platform where to find new suppliers and promote your product to acquire new local customers. Do you think this is similar to Amazon? Well, similar but with the difference that our network is made of local and independent businesses. Ours are vetted relationships and all interactions are based on cooperation rather than fierce competition. Is that enough?
8. How does it generate more sales?
If you join Parity it means there is the prospect for new sales. Every business entering the network is filling a gap and this means it offers something that is not yet or not sufficiently available. This still doesn’t convince you? We have brokers who work to enable and facilitate transactions, your sales and purchases. Your broker will get to know your business, understand your offer and demand in order to support your operations within the network. They will be additional capacity to your sales team and source of support.
9. How do I spend this income?
Right question! The statement “Parity is a way to recover expenses with the sales it generates” works if there are expenses to recover. Being within a local currency, the income coming from Parity is useful if spent. You should aim to stay at 0 or negative. Parity will cover some of your costs and it could free up capital that can be allocated to more productive meanings or simply become profit. What do we do to ensure you can spend? First we talk to you. We ask what you need or what you desire and this will also drive the network expansion. That’s how we identify network’s gaps and that’s how we operate. Furthermore, brokers won’t be just sales support; they will be also advisors when it’s time to plan future expenses or investments. That’s why we like businesses who want to grow and we love when they want to do so with Parity.
10. How can I join?
Application is online. You can submit the information requested about your business and then our team will get back to you. We conduct our network analysis and then we ask for a call or a meeting. Here we talk about how you plan to use Parity and what’s your offer to the network. This will allow us to understand how your company fits in the network, how Parity can benefit your business and which would be an appropriate credit line to issue.