| Are
there any tax advantages to bartering?
Barter income is treated the same
as cash income. There are no tax advantages or disadvantages to bartering.
Trading should be considered a marketing tool, not a tax tool. Capital
Barter Bank provides your company with a statement at the end of each
month for all of the sales you have consummated on our network. Cash
purchases that are normally tax deductible as business expenses are
also tax deductible when purchased on trade.
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. For example, if you owned a hotel that had ten vacant
rooms at £100/night and you need a new copy machine priced at £1,000.
Barter provides a 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 a restaurant, moving inventory for retailers
and manufacturers or increasing billable hours for service business.
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.
How
does barter work with a trade exchange?
A trade
exchange eliminates the restrictions of one-on-one trading where each
business must want what the other has to offer. A CBB trade consultant
works with you to bring your company new sales, increased market share
and to minimize cash outlay for everyday business expenses. Clients
of an exchange use trade pounds, instead of cash, to handle their transactions.
CBB acts as a third party record keeper, providing monthly statements
to clients, which reflects all trade purchases, sales, and a current
trade pound balance.
What
companies are involved in barter?
Globally, over 470,000 businesses are involved in 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?
It
costs nothing to join CBB. Your business will only be charged each time
you make a sale or a purchase. This is called a transaction charge and
is charged at the rate of 5% for both sale and purchase. The transaction
charge is invoiced at the end of each month and payable in sterling.
What
if everyone wants my product or service and I can't find enough to buy?
Every member business is assigned a trade consultant
in our office. They do a complete spending analysis with you on your
current purchasing as well as projections for your business in the future.
You can spend your trade in many of the same ways you spend your cash.
However, we allow you to control your account according to your needs.
If your account is overdrawn we insist you offer your products and services
at 100% barter pounds. If you are in credit you may accept payment in
barter and cash. You can structure your account to accept 100%, 75%,
50% 25% or 0% barter in accordance with how many trade pounds you have
in your account. The balance is paid in £sterling in the conventional
way. For example you might wish to accept 100% trade until your balance
reaches T£5,000, 75% trade between T£5,001 and T£10,000, 50% trade between
T£10,001 and T15,000 etc. You can structure your account in a manner
which suits your business.
What
if I need to make a purchase before I've earned trade pounds in the
system?
Just
like a bank, we encourage businesses to apply for a barter line of credit.
If you qualify, you can begin purchasing immediately.
How
should I price my products and services?
Prices quoted to barter clients
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.
How
can I barter outside of my own city?
Trade
exchanges participate in worldwide reciprocal trade relationships with
other exchanges offering a multitude of additional barter opportunities.
We fulfill our members’ travel requests via our vast Global Network.
We also help businesses looking to open new markets by using the distribution
channels available nationwide. In turn, we receive products from across
the Nation that are made available to our local membership.
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