What Is Barter?
Barter is a way of transacting business without the use of cash. You can buy what you need and pay for it with what you have. A sale is made that would not have been if cash were required. Plus, there is an immediate increase in cash flow when you trade for an expense that would otherwise be paid for in cash.
Are There Tax Advantages To Bartering?
Barter income is treated the same as cash income. There are no tax advantages or disadvantages to bartering. Colorado Currency provides you with a 1099B at the end of the year for all of the sales you have consummated in our community. Cash purchases that are normally tax deductible as business expenses are also tax deductible when purchased on trade.
How Will My Business Benefit From Barter?
Barter produces new business, allowing you to expand your market and maintain your cash-paying customers. Barter conserves cash. For example: you own a hotel that has ten vacant rooms at $100/night and you need a new copy machine priced at $1,000. Barter provides the way in which you can buy your copier, fill your rooms (at your cost on the rooms) and maintain your cash. The same is true for filling empty tables for restaurants, moving inventory for retailers and manufacturers, or increasing billable hours for service businesses. Barter provides a competitive edge because barter clients are new clients that bypass competing businesses to do business at your establishment while you maintain your existing cash clients. And, they often refer their non-member friends and neighbors to you.
How Does Barter Work With A Barter Exchange?
A barter exchange eliminates the restrictions of one-on-one trading where each business must want what the other has to offer. Colorado Currency works with you to bring your company new sales, increased market share and to minimize cash outlay for everyday expenses. Clients of an exchange use trade dollars, instead of cash, to handle their transactions. Colorado Currency acts as a third party record keeper, providing monthly statements to clients, which reflects all trade purchases, sales, and a current trade dollar balance.
What Kind Of Companies Use Barter?
Globally, over 470,000 businesses of all types are use barter. It is estimated that 65% of Fortune 500 companies engage in barter to one degree or another.
What Does It Cost To Get Started?
There is no cost to establish your business account. You pay nothing until you sell or purchase within our community. Transaction and modest monthly fees cover accounting, marketing, promotions and member services. This fee is the exchange’s main cash producing revenue, necessary to keep the exchange operating on a fiscally responsible basis. Members feel this is a very small percentage to acquire new business.
How Should I Price My Goods and Services?
Prices quoted to barter members are the same as prices quoted to cash paying customers. Business owners are educated shoppers. Barter is simply a mode of payment – just like a credit card or cash. Barter exchanges participate in reciprocal trade relationships with other exchanges offering a multitude of additional barter opportunities. For instance, our members’ travel requests are fulfilled on an available basis, through our vast global network. We also help our local businesses looking to open new markets or acquire goods from across the country by using the distribution channels we connect to nationwide.
How Do I Use The Member’s Portal And Marketplace?
Members receive their own log in to the Member’s Portal And Marketplace. Our specialized industry specific barter software is secure and PCI compliant. In the member portal you can post transactions, view account and tax history, shop online, view our directory and products, and request assistance with a few clicks of a button 24/7/365, We also have a mobile app that can be downloaded from the App Store and Google Play Store.