Barter is an act of trading goods or services between two or more parties without the use of money (or a monetary medium, such as a credit card). In essence, bartering involves the provision of one good or service by one party in return for another good or service from another party.
Business Trade Exchange (BTE) provides an alternate distribution network by using barter dollars instead of cash to handle your transactions. You can charge retail value for goods and services in barter dollars instead of selling them for reduced cash rates or having them go unsold.
BTE acts as a third-party records keeper, providing clients with monthly statements that reflect all barter purchases, sales and current barter dollar balance.
Barter Generates NEW Customers and allows you to expand your market while maintaining your cash-paying customers.
Barter creates new customers because buyers are motivated to pay with their products or services and save cash.
Barter customers pay retail prices, so you get the full value of your goods and services.
Barter customers will bring you all the cash referrals that your present clients bring. You will gain new cash paying-customers too-as long as you give your barter customers the same great services and pricing you offer everyone else.
Businesses who sign up to an exchange gain access to a directory of other member businesses, from which they can purchase ‘on credit’, meaning interest-free credit. Some systems do active brokering to encourage members to trade. Trading in this way can ease cashflow problems and help turn inventories around.
Frequently asked questions
We now have an FAQ list that we hope will help
you answer some of the more common ones.
WHY SHOULD I TRADE?
Trading will open your door to new customers, generate new sales and increase your volume of business. At the same time, you can buy other goods and services without a cash outlay.
IS TRADE LEGAL?
Yes! We are officially recognized under the “Tax Equity & Fiscal Responsibility Act” of 1982 in which companies like ours are identified as third-party record keepers, along with banks, securities brokers, attorneys and accountants.
HOW WILL MY BUSINESS PROFIT FROM BARTER?
Barter produces new business – allowing you to expand your market and maintain your cash-paying customers. Barter conserves cash. Barter provides a competitive edge. Barter clients are new clients that bypass competing businesses to do business at your establishment while you are maintaining your existing cash clients.
I NEED MORE CASH BUSINESS. WHY SHOULD I TRADE?
The sales you make through BTE are truly “plus” business for you. If you did not belong to the Business Trade Exchange you would never see these sales.
When you use the trade income from these sales to buy things you would otherwise have paid cash for, you are left with cash in hand to use for other things. The net effect is the same as if your cash sales were increasing.
Every time you save a cash dollar it is as good as earning an extra cash dollar.
IS BARTERING SOMETHING NEW?
Bartering has long been an accepted method of international trade. It is today a $3.5 billion industry worldwide. Many of the Fortune 500 businesses are heavily involved in domestic and international barter.
HOW DO BTE MEMBERS DETERMINE PRICES?
Members sell to each other at their prevailing prices. They are not expected to sell at specially discounted prices.
At the same time, members must not inflate their prevailing prices when selling for trade dollars. One of the benefits of belonging to a barter group is the ability to buy at close to your wholesale cost of goods or services. Inflating prices erodes that benefit for other members and will lead to termination of the offending account.
HOW ARE MY TAXES AFFECTED BY TRADING?
Trade dollars are treated exactly the same as cash for tax purposes. For example, when your business sells for trade dollars, those dollars are part of its income in the tax year – just like cash.
If your business spends trade dollars on business-related items, those expenses should be offset against income – just like cash. (BTE fees are tax deductible.)
If you or your employees spend trade dollars on personal items, those dollars are part of your taxable income – just like cash.
HOW DO I KNOW HOW MUCH INCOME TO INCLUDE ON MY TAXESES?
At the end the each calendar year, BTE computes the proceeds from your barter sales and submits this information to the IRS on Form 1099-B. Be sure to include your bartering income from Form 1099-B in your total income when filing your tax return. You are also mailed a copy of this form for your records.
WHAT IF MY PRODUCT OR SERVICE IS TOO POPULAR?
I’ve heard that businesses like mine can be flooded with trades. With BTE you decide when and how to barter. You can trade just on certain days or products. You can limit trading to a set amount per month, or you can choose to trade only during your slow seasons. With BTE, you’re in charge!
DO I HAVE TO TRADE ALL THE TIME?
The benefits of trading are realized when selling and purchasing are conducted on a continuous basis. But, there may be certain periods, when you may wish to hold off with accepting any new business. This is accomplished by placing your account in a hold status. You can resume trading at any time thereafter.