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About Barter

Barter is the exchange of goods and services without the need for cash.  However, direct barter or contra as it is sometimes known suffers from a lack of flexibility.  For example, the goods to be traded between two parties are not always of equal value, and a trader does not necessarily want to trade for the particular goods that another trader wants to exchange.  Organized barter, via a trade exchange, overcomes the problems and restrictions of simple barter or contra arrangements.

Almost all businesses have excess capacity (office or press hours unused, tables unfilled and hotel rooms unoccupied) or excess inventory (discontinued, slow moving, or over-produced). When times are slow or you need more resources to grow, the normal pattern is that these unused resources INCREASE while your cash decreases.

Barter gives you the opportunity to turn those resources into value and purchasing power when you need it the most by trading your products or services for the things you need - when you need them.


Traditional barter – huge limitations

Barter trades essentially involve companies trading in kind, without the use of cash, for e.g. a hotel may trade rooms in lieu of linen or an electronics company may trade its products in lieu of media etc.

Barter has traditionally been relied upon and followed / understood as direct trade between two parties for an exchange in kind (i.e. no cash), thereby helping the parties trade what they have and get in return what the other party has. The key limitation has always been the restrictions of one – to one trade namely:


• Struggle to find partners with matching requirements Party A may want what Party B is offering, but Party B may not want    what Party A has.

• Limitations of value
usually low value transactions and even if requirements match, values may not.


Corporate Barter (networks /trade exchange)…. Opportunity for a new / evolved system
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In contrast to traditional barter, Corporate barter exchanges facilitate companies to engage in multi party barter trades without any one to one limitations. Through an organized trade exchange facility, companies may sell to any company in the exchange network and against the value sold, buy from any company without any one-to-on restriction.


 
  Designed & Developed by: Concept Solution India All rights reserved by: A to Z Barter