Have a look at the basic profit and loss statement below showing some items in orange text. If the business paid for these in Barter Pounds, the business could benefit from not having to spend cash on these areas. If the business was to generate Barter Pounds from clients within a barter network then this additional business could be used to finance these overheads.

In our example shown below, you can see that the areas highlighted in orange are cash outlays to the business which could potentially be sourced using barter.

The business could overdraw the Barter account to settle these costs and just repay from business conducted in Barter Pounds as and when it comes along. If this business does not operate at full capacity all year round, then it would be logical to take in work in Barter Pounds as this would not prevent the business from doing work paid for in GBP; it would just be additional business generated.

Another area where Barter can assist is where it takes time for clients to pay. If those clients paid in Barter, then payment would be immediate and those Barter Pounds available to spend.

Sales Income: £200,000
Cost of Sales: £60,000
Gross Profit: £140,000

Fixed and Variable Costs

Rent and Rates: £15,000
Staff Wages: £60,000
Personal drawings: £25,000
Stationery: £2,000
Print: £2,000
Accountancy costs: £1,500
Web redesign: £2,000
IT Support: £800
Office cleaning: £600
Legal fees: £2,000
PR: £2,000
HR Advice: £600
Corporate Gifts: £1,000
New product launch: £3,000