Do you wish to create value within your business without spending cash? It’s possible through trading! Barter is a form of trading that has been around for centuries, but in the modern age, platforms such as Barter Network make it easier than ever to connect with other traders who want what you have to offer and vice versa.
Here are some frequently asked questions that many new traders have that will help you unlock success in a bartering network.
What Exactly is a Bartering Network?
A bartering network is an online platform whereby a community of traders can list the goods and services they wish to make available for trade and connect with interested parties so that exchanges can be made.
This streamlines the process and better ensures that traders can find trading partners, thereby maximising the possibility of creating value.
How Does Bartering Today Differ From Bartering in the Past?
In the past, bartering occurred between two individuals responsible for establishing the relationship and managing the transaction from start to finish.
However, in the modern age, online platforms such as Barter Network allow individuals to connect instantly with large groups of like-minded trading partners, where they can trade goods and services in numerous directions.
Modern bartering networks also use trader brokers to facilitate exchanges and help manage the process, making everything more streamlined.
What is the Benefit of Bartering in the Modern Age?
In centuries past, trading was the go-to as not everyone had access to cash. Modern bartering fulfils a similar role in that businesses can exchange goods and services without needing money to change hands.
This is particularly useful during times of economic uncertainty or when your cash flow is limited. Bartering allows you to create value without spending money.
Is Bartering Taxable?
Depending on the jurisdiction, bartering is taxable. In Canada, the Canadian Revenue Agency (CRA) dictates that bartered goods are taxable according to their respective values.
Therefore, parties who engage in bartering are required to report the value of the goods and services that are exchanged to the CRA and pay the necessary tax accordingly.
Is There Room for Negotiating on a Bartering Network?
Negotiations are a key part of the bartering process. It might even be argued that it is an essential feature.
When parties interested in trading goods connect through a bartering service, negotiations can begin regarding the perceived value of the goods and services being offered, taking into account the quantity, quality, and other aspects, to ensure that a fair trade is met.
In many cases, the value of an item is subjective, depending on the demand, thereby making negotiations essential.
Am I Protected When Bartering Online?
When bartering through a legitimate platform such as Barter Network, you are protected as the identity and credibility of each trading partner have been established and vetted by the platform. Moreover, secure payment platforms and exchange protocols are integrated to ensure that all trading is secure and that no fraudulent activity can occur.
If you wish to participate in online trading, Barter Network is here to facilitate the process. Contact us now for more information, or book a free assessment to determine your bartering power.
