Barter is a powerful tool for strengthening the finances of your company. The wise use of barter will build your profitability, protect your balance sheet, and improve cash flow. Equitrade will also show you how to use barter for acquisition financing or expansion capital.
Since barter sales generally represent add-on business that you would not otherwise enjoy, the gross profit from these sales generally drops straight to the bottom line. Moreover, barter sales often represent situations where the incremental cost of sales is very low, and profit margins are correspondingly very high. Further, using barter to maintain higher levels of production can increase margins on non-barter sales as well.
Barter offers a unique solution to the problem of overstocked or stale inventory, and can protect your balance sheet from costly writedowns due to deep discounting or liquidation sales.
In addition to increasing profitability and protecting against inventory writedowns, barter can substantially improve your cash flow. The use of barter allows you to substitute trade for at least a portion of your normal cash outlay when purchasing needed goods and services.