- Are Trade Exchanges Legitimate?
- What Percentage of my Business Should Be Done In Trade?
- What If I Don’t Have Enough Trade Dollars In My Account?
- What is Barter?
- How will my business benefit from Barter?
- How does barter work with a Trade Exchange?
- What does it cost to be in a Trade Exchange
- How can I Be More Profitable With Trade?
- Why Belong to a Trade Exchange?
Ours IS. Under the Tax Equity and Financial Responsibility Act of 1982, the federal government officially recognizes barter exchanges as third-party record keepers—meaning they record barter transactions and report, by law, client barter income to the IRS. This puts barter exchanges on equal footing with banks, credit unions, securities brokers and others as legitimate custodians in the eyes of the law.
Many experts recommend that Trading be kept to no more than 10% – 15% of total business receipts. However, some industries can absorb as much as 30% of their volume in Trade without seriously affecting their cash flow. Speak with a Jambalaya Trade Broker or your CPA to determine what levels are healthy for your business.
Our organization is much like a bank or credit union. Check with our office to see if you qualify for an Interest-Free Credit Line . Arrangements can sometimes be made to facilitate purchases in advance of anticipated receipts.
Barter is a business tool used by smart business owners which allows them to transact business without the use of cash —from sales with customers they would not have had otherwise. Barter helps businesses attract new business. Additionally , there is an instant improvement in cash flow when a business trades for expenses that would have otherwise be paid for in cash.
Barter provides you with new clients and allows you to expand your market beyond your cash-paying accounts. . With barter, you also gain a competitive edge. Barter customers will bypass your competitors to do business with you.
A trade exchange eliminates the limitations of one-on-one trading, where each business must want what the other has to offer… and must have what the other needs. Barter companies reduce everything to a dollar value that can be earned and spent with any other member in the exchange network. A trade exchange is a third party record keeper, providing members with monthly statements that reflect all of the monthly trade sale sand purchases, trade balances and cash reserve accounts.
Typically there is a joining fee of $300-$500 with an annual renewal fee. Locally the Jambalaya Trade Exchange is $395 first Year and renews for $200 in trade.
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 income instead and save your cash for products and services that Trade may not be able to supply?
Unlike ‘hit and miss’ advertising, the prospect of getting new clients is guaranteed . As a member you will enjoy the benefits of purchasing power with other Members within our association. Meeting other Members and discussing business will broaden your scope of understanding and make new resources available to you.