• Frequently Asked Questions

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Ever since the inception of Safe Barter in 2012, the way company dealing with safe barter across ...

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Services

Barter has developed into a sophisticated tool to help businesses increase their...

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Shop No. 2, Shri Saibaba Road No.2, Singh Estate, Opp. Basara Studio, Kandivali (E), Mumbai - 400101.

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FAQ (Frequently Asked Questions)


Q. What is barter?
A. Barter is a way of transacting business without the use of cash. You can buy what you need and sell what you have.

Q. What are the advantages of a barter Trade? A. Barter trade network provides businesses with a scores of new clients and result in incremental business, expanding their market beyond their cash-paying accounts. Barter also helps to conserve cash. Instead of spending cash to purchase goods and services, businesses barter their own goods and services to pay for those things they need-leaving more cash in their business and providing an increased cash flow. A Barter System puts idle resources to work. Excess time, inventory, and capacity are converted into profits.

Q. Why do businesses join a barter exchange? A. One-on-one trading is done daily between businesses. The problem with one-on-one trading is that the transactions will not match exactly as per the requirements of each business owner. In a barter network, everyone trades with everyone, even if they do not want to take back directly what the other person has to offer. amount Trade due are credited/ debited to a trade account of the respective parties, which can then be spent on any item or service desired from within the network.

Q. What does it cost to join a barter trade? A. There is no membership fee or any other direct or indirect cost attach to joining the barter trade.

Q. How does a barter exchange make money? A. Typically, there is a 6 to 7% percent transaction fee on sales and purchases-representing a fee paid for generating incremental sales for clients of the exchange network. Trade business provided is new business from new clients over and above the member's normal cash business.

Q. Are there any tax advantages to barter? A. There are no tax advantages or disadvantages to barter. The Internal Revenue Service considers barter income as the same as cash income for tax purposes. Trading should be considered a marketing tool, not a tax tool.

 

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