Is Barter Trade Right For Your Company?
Although bartering has been an accepted practice in business for many years
, it was pushed in the background when people began constantly to depend on money as the currency of trade. It is becoming more popular again, perhaps because of the current economic crisis. Companies whose businesses are experiencing a downturn resort to barter trade as an alternative to spending cash for their transactions.Without using cash, some companies can acquire the things they need to operate like office supplies, accounting services, and vehicle insurance, to name a few. Others have been creative enough to use what is called a barter scrip as fringe benefits to their employees. These are like coupons which people could use in the restaurants, coffee shops, beauty parlors, laundry shops, etc. that honor them.
Bartering can also help you to collect from a client who has financial obligations to your company. If the client really has no cash left to settle his credit, then you can ask for a trade of goods or services from him.
One more reason why bartering is good for your business is that it does not affect your cash flow. You do not have to worry about collection problems, because there is no money involved. Since barter trading is all about the exchange of goods, the chance of not being paid is almost impossible. Before one party can benefit from your product or service, you would have received the goods that they are offering, or the exchange of goods and services can be done simultaneously.
There are now many barter exchange networks online which can help companies trade their products and services without using money as a trade currency. Joining a barter club is the right move for your company, especially if you have limited resources. Take, for instance, a company that barter trades its products, in exchange for some services which it then gives out as incentives to its employees. If cash is really tight, the company can give out these services as bonuses (instead of cash), which may include a dental consultation, free meals in a gourmet restaurant, discounts for airplane tickets, laundry services, etc.
It makes sense, then, to make barter trading an essential part of your business operations. It can also help your company as it goes through the transition of being under financed to becoming a financially stable company. You save on cash, and you will also earn more clients through the people you meet in barter exchange networks.
Find a good bartering club that is preferably within your area or which has companies in the same industry where you belong and give bartering a try. You may be surprised to discover how easy it is to acquire the things you need without worrying about paying in cash.
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