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Why Use A Barter Organization? Print E-mail
Written by Russell Tripp   
Thursday, 22 May 2008 12:46

From Wikipedia: "A Trade Exchange or Barter is a type of trade in which goods or services are directly exchanged for other goods and/or services, without the use of money. It can be bilateral or multilateral, and usually exists parallel to monetary systems in most developed countries..."

Historically, having two companies who swapped products and services of equal value was the only way to experience the benefits of trade. We've done "direct trade barter" many times in the past here at AVF Creations.  You have something I want, I have something you want, so we simply trade.  Times have changed. No longer do companies have to search for direct trade relationships.  There now exist multinational trade organizations that facilitate "multilateral" trade.  In other words, I don't have to trade one-to-one with another company.  Through the use of trade "credits", I can provide my services to one company, then turn around and purchase goods or services from a different company that's part of the organization using my credits.

AVF Creations is a member of an international trade organization called Tradebank.  Tradebank provides the platform for trades to come together for their clients. Their services include sending you new business on a continuing basis, facilitating your purchase requests, and automating the bookkeeping for each trade transaction. Plus, all transactions are credited immediately, so there are no receivables, collection efforts, or bad debts involved.

By trading, a company is able to:

  • Increase sales by obtaining new customers
  • Reduce cash outlay - buy products and services with trade dollars while leaving cash in the business
  • Convert excess inventory or unused capacity into tangible assets

By treating Tradebank as an alternate expense account, companies use the 7-15% extra business to pay for existing expenses, not their cost of goods sold. By paying trade dollars for these expenses the company�s cash remains in the bank � unspent � improving both cash flow and profitability.

If you're interested in joining Tradebank, contact the Greenville, South Carolina office at www.864business.com - and tell them we sent you!

 

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