FAQ

Here are answers to the questions prospective members ask most often about trading in the Merchants Barter Exchange:

Q: What are the primary benefits of barter?
A: Acquiring new business, conserving cash, and liquidating excess time, inventory, or capacity. Our member companies consider it a win-win situation — trading what you have too much of for what you really need.

Q: How can barter help me bring in new business?
A: Your company will be introduced to thousands of new business contacts across the country ready and eager to spend their Trade Dollars. You will be entitled to local and national business listings with Merchants Barter Exchange brokers, as well as unlimited listings of items for barter in a weekly fax. You’ll also enjoy additional business opportunities available through special trade auctions and promotional seminars.

Q: Are there tax advantages to barter as well?
A: There are neither tax advantages nor disadvantages, as trade income is considered to be the same as cash income for tax purposes. Trading should be viewed as a marketing tool, not a tax tool. As with cash incomes, however, trade purchases that are business related are also tax deductible to the full extent allowed by law.

Q: Can I barter for goods as well as services?
A: Absolutely. Members spend their Trade Dollars on office equipment and supplies, home appliances and electronics, even autos, trucks, and other vehicles.

Q: What if I need something now that I don’t have enough Trade Dollars to purchase?
A: Trade credit lines can be set up for clients the same way a bank gives credit lines to qualified customers. All trade credit loans are backed by acceptable collateral under guidelines established by the National Association of Trade Exchanges and must be repaid within one year.

Q: Are there other uses for barter that I may not have known about?
A: To be sure. You can also use Trade Dollars to pay employee bonuses or supplements to regular salaries. It is likewise possible to pay some of your bills with trade credit, as well as negotiate purchases with non-member companies, or even clear up past-due accounts receivable.

Q: Which major corporations rely on barter?
A: IBM, Xerox, Chrysler, Hilton Hotels, Shell Oil, General Electric, Mattel, National Semiconductor, Goodyear Tire, Douglas Aircraft, Spalding, and many more.

Q: What’s so revolutionary about a barter exchange?
A: A barter exchange eliminates the drawback of traditional one-to-one bartering. With an exchange, you can obtain goods or services from a member company even if they have no need for your goods or services.

Q: What distinguishes Merchants Barter Exchange from other exchanges?
A: Unlike regional exchanges, Merchants Barter Exchange is national in scope, affording our members many more opportunities to trade. And unlike less scrupulous exchanges, we insist that members conduct their transactions with 100% Trade Dollars, not cash under the table. We also require members to charge Trade Dollar prices equivalent to cash prices. This supports the value of the Trade Dollar and enables a vital exchange.

Q: How much does it cost to belong to the Merchants Barter Exchange?
A: There is a one-time initiation fee, which covers set-up costs, broker commissions, newsletters, directories, transaction forms, and other materials. There is also a modest monthly maintenance fee, as well as a cash transaction fee of 10 percent charged to the buyer in each trade transaction. This transaction fee is equivalent to a broker’s commission for generating new business for a member company, and is quite reasonable compared to common “introduction” fees of 15-20 percent or more. We charge the buyer rather than the seller, because member companies receive full benefit from the exchange when they spend their Trade Dollars, not earn them.

Q: How can I try barter risk-free?
A: To encourage companies to experience the benefits of the Merchants Barter Exchange risk-free, we extend a unique “Double Your Money Back” guarantee: we will extend you a Trade Dollar credit line representing more than double your initiation and membership fees, which you can spend with any of our member companies. If we are not able to bring you new barter business to pay that trade back, you may keep it (and spend it) with our thanks for giving us a try. You truly have nothing to lose joining the Merchants Barter Exchange — and plenty of new business to gain.

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