The best reason to join a trade exchange is to raise sales. A membership at IMS is a marketing opportunity; exposing your business to hundreds or thousands of potential customers. We have built-in incentives to buy from you because you accept IMS! By spending within the exchange you save precious cash for those items not available on trade, like your mortgage. If your business is not currently operating at capacity, you can convert excess time or inventory to new profits.
Why Not Directly Trade?
It’s not always easy to arrange a one-on-one trade. It depends on finding another business who is willing to trade, wants what you have and who has what you need. Sometimes the trade isn’t completed when goods are delivered and nothing is received in return. There are many businesses are already bartering on a direct, one-on-one basis.
Belonging to IMS Barter eliminates both problems. At IMS, barter is not direct. We use a computerized accounting system to keep track of all trade dollars earned and spent. When your business sells to another member your account is credited with trade dollars, which are immediately available to spend with any other member businesses in our network. You don’t have to find a member who wants what you have before you can make a trade. And when proper procedures are followed, your trade dollars are guaranteed—even in the unlikely event that a member goes bankrupt.
Are There Any Other Uses For Barter that I might not think of?
Yes, Many clients use their trade dollars to pay employee bonuses. Some even pay employee a portion of their regular salaries in trade dollars. At your request, we will set up employee sub-accounts and will assist your employees in spending their trade dollars. The employee will not pay our 7.5% broker’s fee. This must be paid by the client when trade dollars are transferred to any employee’s sub-account.
It is also possible to pay some of your bills with trade dollars. We will help your creditors spend their trade dollars on goods and services they need just as we would help your employees. Paying bills with trade dollars is just one more creative way to use your trade dollars.
The Exchange can use trade dollars to help clear past due accounts receivable. Businesses that are unable to pay the money they owe you might be willing to pay with their products and services. If their products or services are acceptable to the Exchange, we will purchase them in an amount equal to your outstanding receivable and transfer that credit to your account. You can then use those trade dollars to obtain goods and services you need.
How will I Earn Cash to Cover My Costs?
Remember–you’re not just selling on trade: you’re BUYING on trade! If you sell your product for $1,000 trade dollars, and it cost you $400 to produce, your out of pocket is $400 cash. But when you spend the $1,000 trade dollars on something which normally would have consumed cash, your $400 cost and your $600 profit come right back to you as cash savings! You’re buying with 40-cent dollar.
Are Trade Exchanges Legal?
Absolutely! Bartering through a trade exchange is perfectly legitimate, and a reputable exchange will not allow illegal transactions.
Are There Tax Advantages or Disadvantages to Barter?
There are not inherent advantages or disadvantages to barter transactions. Barter is a marketing and cash management tool, not a tax tool. Business income must be reported on your tax return whether it is cash or barter income. Conversely, business expenses are deductible whether cash or barter. Service fees and renewal fees paid to the exchange are generally deductible as business expenses. Barter expenditures for items of a personal nature are generally not deductible, but are considered compensation or a draw against net income.
Please consult a tax professional. IMS has many qualified tax professionals in our trade exchange if you should need one.