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WHAT IS BARTER?

Barter, at its most basic and enduring level, is the exchange of goods and services between parties without the use of cash. Barter has been around long before cash. Modern barter is the way entrepreneurial business people get what they need, when they need it - even if they don’t have the cash - by trading their spare capacity or inventory (what they have).

Most businesses operate on the earn-save-spend model for making purchases. They earn the money. They save the money. They spend the money. This model is effective when the business is earning enough money to cover costs, plus save a little for growth. But what happens when the business isn’t earning enough money?  Or if the business is experiencing the inevitable ‘catch 22’ - you need to grow now to earn more in the future?

Barter is a viable solution to these common problems. Almost all businesses have excess capacity (i.e. office or personnel hours unused, tables unfilled, hotel rooms unoccupied) or excess inventory (i.e. discontinued, slow-moving, or over-produced goods). When times are slow or you need to increase your business expenses to grow, the normal pattern is that your excess capacity or inventory INCREASES while your cashflow decreases. Barter gives you the opportunity to turn your spare capacity or inventory into value, by giving your business purchasing power when you need it - by trading your goods or services for the things you need, when you need them. Barter provides a competitive edge.




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