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Corporate Barter FAQs
Q. What is barter?
A. Barter is a method of transacting business without the use of cash. Businesses buy what they need and pay for it with what they have. Direct trades can be arranged between two companies – who have mutually agreeable products or services to swap evenly.
Barter exchanges facilitate local trades between businesses, serving as a clearinghouse – so that businesses do not necessarily have to take back from the company to which they sell their products or service. Businesses sell directly to barter clients and earn trade credits that they can spend back within that trade exchange’s local economy. A sale is made that probably would not have transacted if cash were required. Plus, there is an immediate increase in cash flow when one trades for an expense that would otherwise be paid for in cash.
Q. What is corporate barter?
A. NATE Corporate Barter Division provides corporations with a powerful tool to increase their profits by bartering their excess inventory or capacity in exchange for their needs or wants. The revenue of unsold perishable or time-sensitive inventory or capacity can never be recovered. Rather than discounting or taking a loss, corporations may put to use credit for their unsold inventory or excess capacity as trade currency through NATE’s online barter network called The BANC. NATE purchases agreed upon inventory or capacity from corporate members, in blocks of $5,000 or more in credit.
NATE Corporate Barter Division purchases unsold inventory and excess capacity, which then provides immediate value redeemable through an online barter network, called The BANC. With a network of over 50,000 trading partners throughout the U.S. and Canada, this online barter network offers a Corporate Barter Membership, allowing corporations to generate immediate value for their under-performing assets and excess capacity.
Corporations are able to purchase needed products or services immediately, from the NATE’s online barter network – The BANC. Corporate barter provides the additional benefit of corporations gaining new business, incremental revenue and the potential for future cash business from clients who utilize the barter credit.
Q. What are the benefits of corporate barter through NATE Corporate Barter Division?
A. There are several, with the foremost being generating revenue for unsold, excess inventory and/or capacity. Barter provides new clients and allows corporations to expand their market beyond cash-paying accounts. Barter also helps in conserving cash. Instead of spending cash to purchase goods and services, corporations may barter their excess inventory or capacity to pay for needed products or services. Thus, more cash stays within the corporations, providing increased cash flow. Barter puts idle resources to work. Excess time, inventory, and capacity are converted into profits.
Corporate barter provides corporations with a vehicle to:
- Receive value for unsold perishable or time-sensitive inventory or capacity, instead of sacrificing revenues or attempting liquidation
- Gain access to new customers
- Generate incremental revenue and potential repeat business
- Increase profit by improving their bottom
- Expand advertising and marketing, without increasing expenses
Q. How do I know what is available for barter in The BANC?
A. Your trade credit sold to NATE, is immediately credited to your BANC account. You are provided with a User Name and Password to your online BANC Account. When you log in, you are provided with complete access to The BANC online barter network. You are able to search for products and services throughout the entire network with easy-to-use search capabilities. In addition, if you need something that is not listed as a current availability – you are able to process a request for your need. This need is emailed out the next business day to all members of The BANC. Members are very successful at matching requests with sources to supply them on a bartered basis.
As a NATE Corporate Barter Member, each weekday you will be emailed a BANC New Item Listing – which advertises all of the new product and service offerings from throughout The BANC network. You simply contact the listed vendor or trade exchange directly to find out more details and spend your BANC Trade Dollars for what your corporation needs.
Q. Why join NATE Corporate Barter Division?
A. By joining NATE Corporate Barter Division, your business is instantly connected with members of The BANC. With a network of over 50,000 trading partners throughout the U.S. and Canada, this online barter network offers a Corporate Barter Membership, allowing corporations to generate immediate value for their under-performing assets and excess capacity.
The BANC will always protect your lines of distribution and will not interfere with your cash business. As a result, you can effectively exchange your excess capacity or slow moving inventory to pay for needed products and services, available through The BANC.
Q. How does barter work within NATE Corporate Barter Division and The BANC?
A. NATE Corporate Barter Division purchases your unsold inventory and excess capacity, and provides immediate value redeemable through an online barter network, called The BANC. With a network of over 50,000 trading partners throughout the U.S. and Canada, this online barter BANC offers a Corporate Barter Membership, allowing corporations to generate immediate value for their under-performing assets and excess capacity.
Members of The BANC use Trade Dollars, instead of cash to handle their transactions. For example, if a corporation sells $10,000 worth of credit for inventory or excess capacity to NATE - they will receive $10,000 in Trade Dollars credited to their BANC trade account. These Trade Dollars can then be used to purchase from the other trading clients within The BANC online barter network. The BANC is a third-party record keeper, providing monthly statements to members, which reflect their purchases, sales, fees and current trade dollar balance.
Q. Are there any tax advantages to barter?
A. There are no tax advantages or disadvantages to barter. Barter income is the same as cash income for tax purposes. Trading should be considered a marketing tool, not a tax tool. As with cash income, however, trade purchases that are business-related are also tax deductible.
Q. How do I get started as a corporate member of NATE Corporate Barter Division and The BANC?
A. Simply go to the Join Us section of this website. There you can complete a BANC Corporate Membership Form and review our Application Agreement. A member of our staff will then call you to discuss your initial investment payment and discuss your excess products and services, as well as full details on our corporate barter program.
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