Mutual Credit builds trade without money

Members trade with each other on the basis of credit accounting -
buying and selling within the network does not require money.
Result: increased trade volume, better cashflow and lower finance costs.
Groups are networked together for inter-trade.


Small businesses in trading relationships can form Mutual Credit Clubs and trade with each other using trade credit. As long as the credit flows around the network, credits and debits can be continuously cleared – enabling trade without the need for bank-money.

This means that network members can continue to trade with each other through credit crunches / cashflow problems, increasing turnover, improving cashflow and reducing cost-of-finance.

Mutual Credit Services is building a simple package which local business networks can set up quickly and cheaply – and networking these networks together for intertrading.

Social enterprises

Social Enterprises already work in a variety of  supportive networks. Mutual Credit tools and approaches can offer these networks a managed and accountable context which can leverage mutual aid and support.

SMEs, third sector organisations and volunteers can all be brought in to beneficial relationships with Mutual Credit networks for reduced dependence on hard cash and greater resilience. The greater the circularity of exchange within connected groups, the greater the value to all members.

Mutual Credit Services is developing proposals for a Social Enterprise focused pilot network in the South West of the UK.


Local Authorities are working hard to build local wealth and resilience in the face of many difficulties, and with limited ability to connect with local businesses.

Mutual Credit networks offer many benefits for municipalities, not the least of which is an inbuilt, bottom-up incentive to local circularity of trade – a key aspect of local wealth building and the circular economy. Other benefits include real-time data on trading patterns within the network and the ability to build local business confidence.

Mutual Credit Services is working with CLES on developing Mutual Credit policies and pilots for LAs.