Trade dollars are just like any other currency. They work because value for value is traded. Rather than using a cash system, however, you trade for “trade dollars”. The trade dollar can be saved and spent just like cash. They can be spent with others in the trade association – as much or as little as desired – just like cash. You do not need to know the person or company you are doing business with – just like cash. Businesses or professional people sell their products or services at fair market value for credit to their trade account. These credits – trade dollars – are then used to purchase goods or service from others who are in the trade group exchange.
Trade exchanges are what make this possible. They bank your credits, deduct your purchases, promote your products or services and issue a 1099-B for tax purposes. The IRS then recognizes the trade dollar as being the equal of the US dollar and both income and expenses are treated just as though your trade dollars were cash.
Fact: Barter in one form or another equates for almost 30% of the worlds total business transaction. Of that, it`s estimated that over 250,000 American businesses use barter in their daily operating process. Futhermore, approximately 70% of all Fortune 500 companies barter on a regular basis for goods and services equating to billions of dollars in transactions annually. When you think about it those are some staggering numbers. What does it all mean for you? It means there are plenty of opportunities for you to use barter top gain new customers, reduce overhead, expand your business and increase your income.
That’s Cash Free Living!