Do you want to trade goods or services for something of equivalent worth? Taking advantage of the barter system of exchange can be a great way to add value to your business without any cash exchanging hands.
Here at Barter Network, we use a revolutionary concept whereby goods are traded directly with other members through our unique currency: BNL Trade Dollars. These dollars, which the Canadian Customs and Revenue Agency recognizes as the equivalent of one Canadian dollar, can be spent on any goods or services of your choosing within the closed barter exchange economy that forms our network.
Let’s take a quick look at why a barter network like ours that uses an internal currency in a closed barter network economy is more advantageous than traditional buying and selling using regular money on the open market.
Facilitating Exchange
One of the greatest advantages of being part of a formal barter network with an internal currency is that mutually beneficial exchanges can be facilitated through a highly organized matchmaking process.
This can help network members overcome what is referred to as the “double coincidence of wants” problem. This describes the challenge present in traditional bartering, wherein both parties must have something the other wants in order to effect a successful barter. Without this match, a mutually beneficial trade cannot be achieved. Finding such a match on the open market can be extremely difficult.
Having an internal currency simplifies this by providing a medium of exchange ‒ the BNL Trade Dollar. This allows for goods and services to be exchanged in more directions than just two.
Community Building
Having a closed barter network rather than simply trading on the open market fosters a much stronger sense of community. Participants learn to trust each other more than they might trust anonymous market participants, especially since all participants and their respective trades have been vetted.
This results in stronger relationships being formed and more cooperative exchanges becoming possible. In the end, everyone in the network benefits as the closed economy becomes stronger.
Local Focus
While Barter Network has access to global networks and is held to international standards in the modern trade and barter industry through its association with the International Reciprocal Trade Association, its main focus is on building and supporting a local bartering community.
The idea behind this is that it can support local businesses and communities, promoting economic growth in Canada and helping businesses attain value without the need to spend cash dollars. This is immensely helpful for businesses that might have very tight cash flows.
The local business community support provided by Barter Network fosters relationships that can stand businesses in good stead for many years to come, even for economic engagements beyond the purview of the bartering community.
Stability
During times of economic volatility, an internal currency like the BNL Trade Dollar might offer more stability because it is not subject to external market fluctuations like exchange rates, interest rates, and inflation in the same way as regular currencies.
The localized control of the internal currency allows us to provide a more predictable trading environment that is responsive to the unique needs of the community, shielding participants from extreme external shocks when necessary.
Overall, this provides a more stable transactional environment, making it easier for participants to plan and carry out their business activities.
For more information on how to take advantage of our barter system of exchange, contact us at Barter Network to sign up. Become part of the community and start reaping the benefits today.
