We have taken this decision for two main reasons:
1. The barter facility extended to us will fund the expansion of out Telford office, and;
2. Athough we have only been signed up for a week, we have already picked up two new clients through Bartercard.
How Bartercard Works
Since 1991, Bartercard has combined the latest technology and a global network of members to transform the traditional form of simple bartering into a flexible and modern business tool to meet the demanding needs of today’s businesses.
Bartercard enables member businesses to exchange goods and services with other member businesses without using valuable cash, or having to engage in the direct two-way swap of goods and/or services.Members gain access to a network of other member businesses. Each member is issued an account number, a transaction card, an interest free line of credit and access to Bartercard’s printed and online business directory, offering members a world of trading opportunities.
Members use their Bartercard transaction card to trade anything from stationery to real estate, all facilitated by Bartercard’s global transaction technology. Bartercard operates similar to the common credit and debit card systems, as operated by VISA and MasterCard.Members earn Bartercard Trade pounds for the goods and services they sell and this value is recorded electronically in the member’s account database.
The Bartercard Trade pound is recognised by the HMRC and financial institutions as having the same value as the one pound.This service particularly benefits the world’s largest business sector – small and medium enterprises (SMEs) – which are often faced with fluctuating cashflow, slow sales growth and high business financing rates.
How the Bartercard transaction works:
1. A Bartercard transaction is similar to a credit/debit card transaction. Members receive a plastic transaction card and an interest-free line of credit. Monthly statements detail member transactions and Trade pound balance.
2. Trade pounds are credited to the member’s Bartercard account upon the sale of goods and services through the exchange.
3. Members use their Bartercard transaction card to spend their credit balance, or draw on their interest-free line of credit, on goods and services from any other Bartercard member. Trading within the Bartercard system includes a number of transaction methods, such as electronic transactions via the internet, EFTPOS swipe card facilities, telephone, e-Commerce or by traditional transaction voucher.
In essence…Bartercard is a strategic business tool that acts as a third party record keeper for global business-to-business trading. It facilitates and monitors all purchases (debits) and sales (credits) undertaken by its members. Bartercard’s credit/debit system functions in the same way the MasterCard and Visa systems deliver service to cash-paying consumers.
Benefits of Barter:
Barter increases sales
A barter exchange markets your company to thousands of local, national and international businesses who are all potential customers. For example, as at 2006, Bartercard had over 4,000 member businesses in the UK and over 55,000 member businesses around the world to facilitate incremental business over and above your daily cash-paying customers. Businesses barter to purchase what they need or want, and pay for them with the additional sales of their goods or services.
Barter improves cashflow
Cash savings are the primary benefit of barter. Barter allows you, as a business owner, to pay for what you need with your own goods or services, allowing you to preserve working capital for other expenses. When you use barter, instead of cash, to purchase needed goods and services, you reduce your cash costs by paying for them with revenue generated by incremental barter sales. Making purchases with your Trade Pound means the payment is made with new sales - sales made by your exchange affiliation. Bartering helps reduce cash outlays for overhead costs. Many of the services offered through barter — such as accounting, cleaning, gifts, restaurant dining and travel — relate to overhead costs. Obtaining these overhead services through barter rather than writing out.
If you want to check out Bartercard for yourself, you can click on the title to this article, for a link direct to their web site.