The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
August 22, 2000
In this week's report. . .
BarterNet Now Includes 14 U.S. Retail Exchanges
BarterNet Corporation has announced the addition of two trade exchanges with 1,450 businesses to its rapidly growing network of established and profitable exchanges. Alamo Barter Corporation of San Antonio and Tradesource Phoenix of Arizona have both entered into affiliate agreements with BarterNet, with plans to merge at a later date.
San Antonio-based Alamo Barter Corporation, www.alamobarter.com, serves 750 members. Known as Barter Systems and Alamo City Trade until their merger in June of 2000, Alamo is the largest trade exchange in Texas. They are a member of the National Association of Trade Exchanges (NATE) and the Northside Chamber of Commerce.
Tradesource, www.tradesource.net, is the largest trade exchange in Arizona, serving over 700 businesses. It was founded in January 1987 by the mother and daughter team of Sylvia and Mary Ellen Rosinski. Phoenix-based Tradesource is a member of NATE, the International Reciprocal Trade Association (IRTA), the Scottsdale Chamber of Commerce, and the Phoenix Chamber of Commerce.
The BarterNet network has now grown to fourteen trade exchanges representing more than 21,000 businesses.
Don't Start Or Expand Your Business Without It!
Credit cards can act as a bridge to get a new venture over the initial financial hurdles, allowing the new business to pay its suppliers while waiting for receivables to come in.
In fact, even at the prestigious Wharton School of Finance the entrepreneur program suggests to students that they amass as many credit cards as they can, because during the early stages of a growing business one can be inundated with costs...even in the midst of plenty.
Even when orders are booming, an entrepreneur may not have sufficient income to pay suppliers. So credit cards can act as a stop gap or cushion.
There's no argument about the need for cash infusions in the early days of a new or expanding business. However, they should include in the curriculum another proven method of financing for entrepreneurial start-ups...the use of trade dollars.
Unknown to the school, and many others, are the merits of a good trade exchange and the many ways it can assist a fledgling operator. A new owner who provides needed products and services to the exchange's membership, can instantly borrow trade dollars against future sales.
Those trade dollars can then be used to make necessary improvements and selected renovations, purchase a myriad of needed merchandise, acquire valuable advertising, even finance a gala grand opening promotion.
By using trade dollars for needed products and services maximum cash flow is retained for paying those necessities...salaries, utilities, phone bills, rent, and suppliers.
Thanks to the exchange, cash at this critical time can be used to build the new enterprise rather than paying off credit cards of a banker.
The circle is completed when the new owner happily opens the door to exchange members, wanting to earn trade credits to quickly pay off the borrowed trade dollars.
Editor's Note: According to the IRS, credit card interest incurred as a business expense is deductible. So be sure to structure your borrowing accordingly.
Coming Events: IRTA & NATE
The International Reciprocal Trade Association's (IRTA) 21st International Barter Congress, "Mining for Gold," will be held in another month September 14-17 in Phoenix, Arizona. For more details e-mail: firstname.lastname@example.org, or call (312) 461-0236.
And scheduled a week later in Atlanta, September 22-23, is the National Association of Trade Exchanges (NATE) regional conference. For details on this training session contact The Barter Company in Atlanta, by e-mailing email@example.com, or faxing (770) 591-3602.
Here And There. . .
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