LETs for small businesses: the benefits
1. LETs is a means of insulating and improving your local market. Matalan or Argos can always compete with you on price, service, advertising, or supply. They cannot compete with your membership of a community. You don’t have to match bulk discounts - instead you can offer goods at your normal price, with some of it payable in LETs currency for system members, e.g. £100 could become £80 and 20 Crees (Galloway LETs local currency is a Cree) for LETs members, or even £20 and 80 Crees for something with a low buy-in price, or that you wish to remove from the shelves. Your and your customers’ money stays here (in the community), and increases the health of your local community, which is vital to your business.
2. LETs trading can increase your cash flow and operating surpluses, through better utilisation of your equipment, and higher volumes of business spreading your fixed costs.
3. LETs sterling you earn as part of your regular business are taxable. Equally, legitimate business debits you incur through LETS are recognised by the Taxation Office as deductions.
4. LETs give you some level of credit at zero interest. There are no forms, but some limits! Great if you’re thinking about expanding your business. You are not giving any credit to other LETs scheme members, and having to pay for it with your overdraft.
5. LETs transactions are secure. A business failure of a creditor in the conventional money system threatens your business viability. LETs provide complete security as your LETs customers pay you for all their transactions at the time.
6. LETs credits can provide a simple and easy staff bonus scheme that can also promote your business, if they spend their LETs credits while in staff uniform, or just by asking them to tell the recipient.
7. Giving away your LETs credits can provide tangible signs of your willingness to help your local community. This is in contrast to providing “freebies” or substantial discounts, and perhaps wondering if they ever do you or the recipients any good.