Frequently Asked Questions

Barter is an important financial tool that enables business owners to build their client base and increase cash flow. Learn more about barter with Barters Biz by viewing the answers to frequently asked questions.

Q. What is barter?
A. Barter is a way of conducting business without using cash. You can buy what you need and pay for it with what you have. A sale is made that would not have happened if cash were necessary. In addition, you will see an increase in cash flow when one trades for an expense that would otherwise be paid for in cash.

Q. What are the advantages of barter?
A. There are many, with the primary being new business. Barter provides you with new customers and allows you to broaden your market beyond your cash-paying customers. Barter also helps in preserving cash. You can trade your own goods and services to buy those things you need instead of spending cash to buy goods and services Thus, you retain more cash within your business, providing increased cash flow. Barter puts inactive resources to work. Surplus time, inventory, and capacity are transformed into profits.

Q. Why join Barters Biz?
A. The issue with one-on-one trading that you are familiar with is that each business owner must want exactly what the other has to offer. Within the Barters Biz barter network, everybody barters with everybody, even if they do not want what the other person has to offer. Trade dollars are credited to a trade account with Barters Biz, which can then be spent on any service or item needed or wanted from within the trade network.

Q. How does barter work within Barters Biz?
A. Clients of Barters Biz use Trade Dollars in place of cash to handle their trades. For example, if a client sells $1000 worth of products to another client, they will receive $1000 in Trade Dollars credited to their Barters Biz trade account. These Trade Dollars can then be used to buy from the other trading clients within the Barters Biz network. Barters Biz is a third-party record keeper, furnishing monthly statements to clients, which reflect their sales, purchases, fees and current trade dollar balance. Also availible online in real time.

Q. What does it cost to get started in Barters Biz?
A. There is a one-time membership investment this covers account setup member manual and membership card.

Q. How does Barters Biz Trade Exchange make money?
A. There is a small transaction fee. This represents a fee for originating new business for clients of our exchange network. In addition to your standard cash clients, trade business provides NEW business from NEW clients over and over. Most business owners feel justified in paying a small percentage to gain new business. This fee is Barters Biz  main cash producing vehicle, essential to keeping the exchange operating on a financially dependable basis.

Q. How can one trade more profitably?
A. Don’t limit yourself to worrying about one or two large one-time purchases. Examine your business checkbook for the last 12 months as a memory aid. Think too, of your personal needs. If you regularly take cash out of your company for living expenses like home improvements, travel, etc. why not take out a barter income instead and save your cash for products and services that Barters Biz may not be able to supply?

Q. Are there any unusual uses for barter?
A.Yes. Barter affords endless opportunities. Here are just a few creative ones: Pay Employees. Use trade dollars to pay employee perks, bonuses, and benefits. Even pay a portion of their normal salaries in trade. For a nominal fee, we will set up employee sub-accounts and aid your employees in spending their trade dollars. Pay Bills. Use trade dollars to pay some of your outstanding cash bills. If you owe a vendor money for a service or product that you just don’t have enough cash to pay – talk to them about barter with Barters Biz. You can immediately pay them if they join our network and you have a trade balance to cover the amount owed to them. Collect Past Due Receivables. Businesses that are incapable to pay money they owe you would most likely be very willing to pay you with their service or product. You may not need these offerings directly, but Barters Biz may have a market for their products. So call Barters Biz with the specifics and we may be able to move their products, either by them becoming part of our exchange network and working with their own account. Also, we can process the trade through your Barters Biz  account and credit your account when the services or products have been sold.

Q. Suppose I want to spend more than what is in my trade account?
A. . The approved policy is that you must have the trade dollars earned in your Barters Biz account from prior sales to cover all purchases. If and when credit is requested, it is handled on an single transaction basis. All loans are subject to a 1.5% per month compounded interest charge on the unpaid balance and subject to the provisions in The Rules and Regulations of The Barters Biz Trade Exchange Contract Agreement and General Trading Policies and Procedures.

Q. Are there any tax advantages to barter?
A. There are no tax advantages or disadvantages to barter. Barter income is equal to cash income for tax purposes. Trading should be considered a marketing avenue, not a tax tool. However, as with cash income, trade purchases that are business related are also tax deductible.

Q. How do I know how much barter income to include on my tax return?
A. At yearend , Barters Biz totals your barter sales and submits this data to the IRS on the 1099B form. A copy is also mailed to you for your records.

Q. Who decides what prices the seller will charge on barter?
A. In essence, the market establishes pricing just as it would for cash. The seller anticipates to trade their services and goods at their prevailing prices. By accepting or rejecting prices, Barters Biz members are ultimately the determining authority in pricing integrity. To monitor fair trading policies, Barters Biz brokers keep in constant contact with Members.

Q. Can I charge part cash and part trade?
A. Yes, but all partial cash/partial trades must be approved by Barters Biz preceding the transaction.