Bartering entails the trading of a product or service for another. Typically, there is no cash exchange. Bartering typically takes place the way it traditionally has – between businesses and individuals.
Alternatively, trade can be based on a third-party basis via a barter exchange company. This is where companies like ITEX fill this need. A ‘barter exchange’ is defined as any individual or firm with members that contract with each other to jointly trade products or services. It doesn’t include arrangements for providing the informal exchange of similar services or products purely on a non-commercial basis. The exchange of this service or product must take place within the barter – exchange platform.
The current barter exchange takes away the obligation of the members to purchase directly from a seller. Rather, when a member of barter exchange sells a product to another member, his or her barter account is credited using the fair market value of that sale and when barter exchange member makes a purchase, his or her account is debited using the fair market value of the acquisition.
ITEX: The Online-Based Barter Exchange ( Cashless Network Of Barter and Exchange)
At ITEX, members are given the opportunity to participate in barter exchange over the Internet. Itex currently has 23,000 members located through out America and Canada. It is North America’s largest cashless network and is 33+ years old! It is on the New York Stock Exchange and it’s not going anywhere but up! If you need a lawyer, w have several, you need the roof on your home to be replaced, we’ve got it, want to take clients to dinner, got that too. You need dental work, no prob, got it covered; someone to watch the pets while you vacation, we have pet friendly everything, hotel, groomers, trainers, daycare, etc. How about the car that needs fixed – you’ll find anything and everything you need in our huge Itex directory.
In this kind of barter exchange or currency exchange, there is an agreement in place to facilitate valuation of goods and services exchanged. If the final exchange or bartering is an unhappy experience, then the parties participating in it somehow neglected to establish the terms of the exchange and one or the other will end up feeling like they got the short end of the stick.
It is imperative for business owners to understand that barter exchange operates primarily as the marketplace organizer. It offers a platform where the members purchase and sell products and services among themselves. If you want someone to come over and lay in new carpet, well, that obviously is going to need someone local, but if you want someone to help you develop your online presence via a new website, social media or create content of any kind, then you can draw from a directory of thousands of skilled members.
The Trade Is Always Conducted With ITEX Dollars
The barter exchange system has a predetermined unit of exchange- referred to as trade or barter dollars. They are valued in the United States currency. Trade dollars permit barter exchange to take place between members when one party does not have a simultaneous need for the good or service of the others. You don’t have to worry about employing an accountant or a professional to monitor your trade dollars. At ITEX, there is a system in place that acts as your bookkeeper. It keeps track of the trade dollars accumulated by individual members. You will also be sent a monthly statement that doubles up on this bookkeeping ledger. At the end of the tax year you will be sent the appropriate forms for filing your taxes.
Typically there are two major stumbling blocks that hold businesses and individuals back from deciding to join and enjoy a cashless network: they’ve had a previous experience with ‘trade and barter’ that was less than satisfying or they don’t have the information about how a cashless bartering network works.
Many are so new to the concept of bartering dollars that they don’t realize that these dollars are counted just like any other taxable income.
Before you try to set up a Barter arrangement, call me, join our network, and we will help you barter the right way and help your business grow.
Liz Bowler
