Barter is a way of transacting business without the use of cash. As a business owner, you can buy what you need and pay for it with what you have. A sale is made that would not have been if cash were required. Plus, there is an immediate increase in cash flow when one barters or trades for an expense that would otherwise be paid for in cash.
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Clients of a barter exchange use Trade Dollars or Trade Credits, instead of cash to handle their transactions. For example, if a barter exchange client sells $1000 worth of products to another client, they will receive $1000 in Trade Dollars/Credits credited to their barter account. These Trade Dollars/Credits can then be used to purchase from the other barter exchange clients within their network. The barter exchange services as a third-party record keeper, providing monthly statements to clients which reflect their purchases, sales, fees, and current trade dollar balance.
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Business owners who use barter, enjoy a powerful tool that makes growing their business a convenient, cost-effective, value-added business necessity. Barter provides you with new clients and allows you to expand your market beyond your cash-paying accounts. Barter also helps in conserving cash. Instead of spending cash to purchase goods and services, you barter your own goods and services to pay for things you need. In addition, barter will put your idle resources to work. Excess time, inventory, and capacity are converted into additional revenues.
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To avoid the problems that one-on-one barter deals can present — each business owner typically must need exactly what the other has to offer. In a barter exchange network, everyone trades with everyone, even if they do not want what the other person has to offer. Trade dollars or trade credits are credited to a barter account with your barter exchange, which can then be spent on any item or service needed or wanted from within the network.
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First, you’ll need to find a NATE Member Barter Exchange in your area. Contact them for complete details on their membership. They’ll show you how the many benefits of barter will enhance your business or organization.
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Barter exchange clients are typically entrepreneurs looking to grow their businesses in innovative ways. They seek new customers, are interested in tapping into new markets, increasing their sales, moving excess inventory, filling idle production time, increasing their cash flow and gaining a competitive edge. See Who Barters.
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Typically businesses must have the trade dollars earned from barter sales to cover their purchases in a barter exchange network. However, just like a bank, some barter exchanges allow businesses to apply for a barter line of credit. Contact a NATE Member Barter Exchange in your area for complete details.
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Absolutely! NATE member barter exchanges participate in a global reciprocal trade program called The BANC. The BANC allows businesses to barter with over 50,000 clients of other barter exchanges globally.
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Use the same discretion as when making any other business decision — when deciding to join a barter exchange. Check out the barter exchange in advance and you can start with verifying that they are a current member of NATE.
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We’ll be happy to try and answer any barter-related question you may have. Just Contact NATE and fill in your question in the message box.
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