A Guide to Barter Networks for Business

  • Price: £3.60
  • Published: July 2015
  • Type: Business Information Factsheet
  • Format: PDF

Barter, otherwise known as reciprocal trade, is a system of trading goods and services without using money. The recent economic downturn of 2008-2014 has led to the growth of barter marketplaces, as traders have tried to cut costs and improve their finances.

Barter is valued by traders as it offers a way to use up spare inventory or capacity, attract new customers and reduce pressure on cash flow. However, it suits some types of business better than others and is not risk free.

This factsheet focuses on barter networks for business, rather than the pure swap markets that have appeared online in recent years. It explains how barter networks operate, lists the advantages and disadvantages of barter and explains how small firms can get involved. It also covers the tax implications of barter transactions and lists examples of barter networks operating in the UK.

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