- What is barter? Barter is a way of transacting business without the use of cash. You can buy what you need and pay for it with what you have. A sale is made that would not have been if cash were required. Plus, there is an immediate increase in cash flow when one trades for an expense that would otherwise be paid for in cash.
- What are the advantages of barter?There are several, with the foremost being new business. Barter provides you with new clients and allows you to expand your market beyond your cash-paying accounts. Barter also helps in conserving cash. Instead of spending cash to purchase goods and services, you can barter your own goods and services to pay for those things you need. Thus, more cash stays within your business, providing increased cash flow. Barter puts idle resources to work. Excess time, inventory, and capacity are converted into profits.
- Why join BarterUp? The problem with one-on-one trading that you may be accustomed to, is that each business owner must need exactly what the other has to offer. In the BarterUp barter community, everyone trades with everyone, even if they do not want what the other person has to offer. Trade dollars are credited to a trade account with BarterUp which can then be spent on any item or service needed or wanted from within the network.
- How does barter work within BarterUp? Clients of BarterUp use Trade Dollars, instead of cash to handle their transactions. For example, if a client sells $1000 worth of products to another client, they will receive $1000 in Trade Dollars credited to their BarterUp trade account. These Trade Dollars can then be used to purchase from the other trading clients within the BarterUp network. BarterUp is a third-party record keeper, providing monthly statements to members which reflect their purchases, sales, fees, and current trade dollar balance.
- How does BarterUp make money? There is a 6.5% transaction fee on sales and purchases. This represents a fee for generating new business for clients of our exchange network. Trade business provided is NEW business from NEW clients over and above your standard cash clients. Most business owners feel justified in paying a small percentage to acquire new business. This fee is BarterUp‘s main cash producing vehicle, necessary to keep the exchange operating on a financially responsible basis.
- How can one trade more profitably? Don’t limit yourself to worrying about one or two large one-time purchases. Look at 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 travel, home improvements, etc. why not take out barter $ instead and save your cash for products and services that BarterUp may not be able to supply?
- Who decides what prices the seller will charge on barter? Essentially, the market determines pricing just as it would for cash. The seller is expected to trade their goods and services at their prevailing prices. By accepting or rejecting prices, BarterUp members are ultimately the determining authority in the pricing integrity. BarterUp Brokers keep in constant contact with Members to monitor fair trading policies.
- What does it cost to get started in BarterUp? There is a one-time membership investment and a modest monthly administrative fee.
- Suppose I want to spend more than what is in my trade account? The standard policy is that you must have the trade dollars earned in your BarterUp account from previous sales to cover all purchases. If and when credit is requested, it is handled on an individual transaction basis. All loans are subject to a 1 ½% per month compounded interest charge on the unpaid balance and subject to the provisions in The Rules and Regulations of The BarterUp Contract Agreement and General Trading Policies and Procedures.
- Are there any tax advantages to barter? There are no tax advantages or disadvantages to barter. Barter income is the same as cash income for tax purposes. Trading should be considered a marketing tool and a cash flow tool, not a tax tool. As with cash expenditures, however, trade purchases that are business related are tax deductible.
- How do I know how much barter income to include on my tax return? At the end of the year, BarterUp will total your barter sales and submit this information to the IRS on the form 1099B. You will also receive a copy of this form for your records.
- How do I get started? Simply click on Join Now! in the navigation bar of this website to register as a New Member.
- Can I view the marketplace on my phone? Yes! We have a mobile app that can be downloaded from the App Store
- How do I find other members? In the marketplace you can find other members in the community. Simply search by category. If you can’t find a particular business or industry send us an email and we’ll connect you with the perfect business.
More Questions?
If you have a question that is not answered here please reach out to us. We would love to hear from you!.