What is Barter?

Barter is the facilitation of B2B transactions without cash. A virtual currency, Barter Pounds are used to purchase goods and services from other members of a network. Members earn Barter Pounds by providing goods and services to other members.

This way, you procure at your cost of sales.

Barter is your business tool to manage your cashflow and enable you to purchase without cash.

How does it work?

Once you have joined on line, we will work with you to ascertain your requirements, the goods and services that you can offer on Barter and where you would look to spend your Barter Pounds.

We will also explore precisely how your specific business can be helped with Barter and if necessary put in place a credit line enabling you to spend straight away.

This is proactive management of your account as opposed to a web directory.

When your first transaction opportunity is identified, you purchase online the service/goods you require and your account is debited with the relevant amount of Barter Pounds and the vendor’s account is credited. At the time of your first transaction, the joining fee is paid and transaction fees are paid to Barter Angels by both parties.

All transactions are undertaken online.

Are there any businesses where Barter may not work?

Barter is excellent for businesses offering high margin goods and services. Businesses where margins are very low and individual transaction amounts are high may not benefit if the transaction is conducted 100% on barter. This is because the business will have a cash outflow to procure the raw materials and the sale will be in Barter Pounds. If the raw materials can be sourced on Barter, then the transaction would benefit the business. Another way to make this a beneficial transaction could be to conduct it part cash, part barter.

If obsolete stock can be sold on Barter then the margins are irrelevant and the business will benefit from Barter.

If margins are fine but the terms of trade a business has to operate within create a working capital requirement, then using an interest free credit line may enable the business to function better and assist the business.

Does Barter Angels allow part cash/part barter transactions?

Yes, it does. The preference is for transactions to be conducted 100% in barter. However, there are certain transactions which need to be conducted on a part cash/part barter basis to ensure the transaction benefits both parties and gross margins and therefore cash outlays are considered fully.

Are there any tax advantages to Bartering?

No. Barter Pounds transactions must be treated as if they are conducted in GBPs (Great British Pounds). They are fully accountable and must be included on VAT and HMRC returns.

How Should I Price My Goods And Services?

These should be priced the same as you would price in GBPs. A £100 service should be priced at BP100.

What happens if I sell too much on Barter and cannot spend my Barter Pounds?

Barter is a business tool that you control. If you feel you are accumulating too many Barter Pounds then we will work with you to look at areas where you can spend them. However, we will also work with you to avoid you overtrading in Barter Pounds and if this means that you refrain from trading for a short period, then that is perfectly acceptable.

I need to procure some items but I haven’t gained any business in Barter Pounds yet?

Apply for a credit line so that you can. These are interest free.

I am starting a business. How can Barter help me?

Barter can be used to build you a website, get your branding and PR sorted, advise you on networking and source you your first clients. We will work closely with you to support you with all your needs.

What are the costs to join?

There is a joining fee and transaction fees. The joining fee is taken when you do your first transaction so you can set up your profile for free on the site and pay nothing until you buy or sell. The transaction fees of 5% are paid in cash on every purchase and sale. Monthly admin fees of £5 cash and 5 Barter Pounds will be payable in 2012 for clients who joined before December 2010 and in 2011 for clients who join after this.