FAQ's
Why do companies barter?
Nearly every business faces the daily dilemma of cash
management and perishable inventory -- newspaper pages
without advertising, airline seats that fly empty,
production facilities that run below capacity. Modern
barter involves the creation of a market in which
available products and services can be offered at full
value to thousands of potential business buyers in a
trading network, or a barter exchange. These sales use a
non-cash currency which participating companies can use to
buy anything listed within the exchange. In this way, a
barter exchange delivers two benefits to business: sales
at full value and the ability to acquire valuable products
and services while conserving cash.Why use trade
credits instead of cash?
Maximizing cash flow is a top priority of all
businesses, small and large. Using trade dollars,
sometimes called trade credits, is an alternative to using
cash, which helps businesses conserve cash. You can earn
trade by selling available inventory or staff time, and
you can spend your earned trade dollars to pay for
products and services you need to run your businesses.
How big is barter in the United States?
The International Reciprocal Trade Association
estimates that $16 billion worth of products and services
were bartered in the United States in 1998. The worldwide
barter industry, by some estimates, exchanged as much as
$65 billion worth of goods and services.
Is business-to-business barter just another form of
auction?
No. In an auction, sellers are unsure what value they
will receive for their merchandise. In a barter
transaction, the price of the products and services is
determined by the seller and must be met by the buyer.
Thus, companies realize the full value of the products and
services they barter. BarterTrust.com represents a
distribution channel that companies can use to increase
sales at full value.
Is barter another way for companies to liquidate
inventory at fire sale prices?
No. There are businesses whose sole purpose is to
relieve companies of distressed inventories by taking
ownership of those inventories using various forms of
non-cash credits. That is very different from what The
Barter Depot does. The Barter Depot Network offers
businesses of all sizes a full-value marketplace of
thousands of companies eager to spend trade dollars and a
non-cash distribution channel into which they can move
merchandise, making it available for sale to all the
companies that belong to the The Barter Depot Network. The
Barter Depot is not a discount channel. We offer
businesses a sensible, non-cash option they have never had
before for selling merchandise at full value.
How much does a business pay to participate in the
Barter Depot?
The Barter Depot charges a nominal registration fee,
and a $75 yearly fee cash & trade after your first year
and a 10% cash commission on each buy transaction. For a
limited time only, The Barter Depot is waiving its initial
registration fee, a $395 value!
Who do I contact if I have a customer service
question?
You can contact us via email at support or toll-free
at (800-409-2209)
How do I know my information is secure?
Our highest priority is protecting your confidential
information. To achieve secure data transmission and
storage, The Barter Depot uses advanced security systems
and practices. These are many of the same state-of-the-art
systems and procedures used by other leading financial
institutions.
How will I benefit from being a Barter Depot client?
Several ways:
Grow your business and improve your cash flow. You can
grow your business by selling available inventory or staff
time, and you use your earned trade dollars to pay for
items typically bought with cash. Barter both online and
offline. Do it yourself online or use our professional
trade brokers to trade offline. Seasoned Barter Depot
brokers are available to provide assistance when needed.
Create a new sales channel and sourcing solution. As a
Barter Depot client, you are able to trade with a vast
network of small and large businesses -- locally,
regionally, and nationwide. Get new customers
cost-effectively. Find new suppliers easily. Leverage your
investment in inventory and staff.
I purchase everything wholesale. Why would I want to
buy products and services through Barter Depot?
Many Barter Depot clients have established business
relationships. The Barter Depot doesn't require that you
change your relationships. We help you expand your
customer and supplier network. Because few businesses can
get everything they need wholesale (such as advertising,
airline tickets, restaurant meals, or contracting
services), The Barter Depot is a great way to conserve
cash.
How does The Barter Depot help me conserve cash?
Here's an example. A store may sell a product for $100
cash or 100 trade. The product cost is $50 with the
balance of the price covering overhead expenses, which are
incurred whether or not the product is sold. The store
sells the product for 100 trade, then uses The Barter
Depot to buy goods and services with $100 in trade ,
rather than cash, thereby netting a $50 cash savings.
Will The Barter Depot help me find new business?
Yes. We have thousands of businesses already
participating in the The Barter Depot. Your listed
products and services will be exposed to all of those
prospective buyers. Be sure to keep your listings
up-to-date so interested buyers always know what you have
to offer. And, once you establish your account, you can
speak with a trade broker who can help you develop a plan
for getting the most out of the network.
Do I need to pay taxes on my Barter Depot sales?
Yes. Sales made via The Barter Depot are subject to
the same tax treatment as cash sales. The Barter Depot
recommends that you contact a qualified tax consultant for
further advice.
How do I handle The Barter Depot fees? Can it be a
tax write-off?
The Barter Depot fees are similar to other expenses
incurred in normal business operations. The Barter Depot
recommends that you contact a qualified tax consultant for
specific advice.
Will I have to worry about accounting and tax
reporting issues?
Clients receive a statement of activity each month. At
the end of the year, you'll receive a Form 1099B from us
to make tax reporting easy. The Barter Depot will also
provide a copy of your Form 1099B to the IRS,as required
by law.
How does the IRS view barter exchanges like The
Barter Depot?
The IRS classifies barter companies as third-party
record keepers. Therefore, Barter Depot has the same
reporting requirements as banks and stock exchanges. Each
year, clients receive a Form 1099B that reports their
Barter Depot sales (US $1.00 = 1.00 trade dollar$). A copy
of the client's Form 1099B is also sent to the IRS, as
required by law.