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Why Business Barter?

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The Department of Commerce says that barter in its various forms accounts for about thirty percent of the world's total business. The International Reciprocal Trade Association (IRTA) recently announced that U.S. barter transacted through commercial barter brokers now exceeds $8 billion annually. Over 250,000 U.S. businesses actively use organized barter.

There are many good reasons why more and more businesses worldwide are bartering their products and services, but underlying them all is one fundamental business motivation; businesses profit.

Airlines and restaurants can fill empty seats, hotels and resorts can fill empty rooms, printers can fill press downtime, professionals can fill empty time slots, health care professionals can treat new patients. Business owners and professionals can then take this newfound revenue and reduce cash expenses or expand their operations.

Businesses across America are taking a serious look at barter as a way to build their bottom line, and the rapid growth of the online barter industry can only mean that American business likes what today's barter industry has to offer.
 

Benefits of Barter

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Businesses large and small choose to barter in order to gain specific benefits
Retail Trade

    * New sales and customers
    * Increased buying power
    * Conservation of cash flow
    * Alternative financing
    * Enhanced quality of life

Corporate Barter

    * Convert slow moving inventory into current receivables
    * Put surplus production capacity to use
    * Increase market share with low cash investment

International Counter trade

    * Preserve hard currency
    * Improve balance of trade
    * Access new markets
    * Upgrade manufacturing capabilities
    * Maintain prices of export goods 
 

Corporate Barter - What is it?

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Corporate barter focuses on larger transactions, which is different from a traditional, retail oriented barter exchange. Corporate barter exchanges typically use media and advertising as leverage for their larger transactions. It entails the use of a currency unit called a "trade-credit". The trade-credit must be known and guaranteed (contract to eliminate ambiguity and risk). Bartering is a medium in which goods or services are directly exchanged for other goods and/or services, without the use of money.[1] It can be bilateral or multilateral, and usually exists parallel to monetary systems in most developed countries, though to a very limited extent. Barter usually replaces money as the method of exchange in times of monetary crisis, when the currency is unstable and devalued by hyperinflation.
 
 
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