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The world’s oldest form of trading is continuing to grow amid the global credit crunch with bartering gaining further popularity throughout New Zealand.
Bartercard is the world’s largest trade exchange. It facilitates barter exchange between member organizations, freeing cash flow and guaranteeing new business. Originally founded in 1991 in Australia, it now spans 12 countries, and transacts $1.5 billion of trade volume internationally.
Members earn Bartercard Trade Dollars for the goods and services they sell and this value is recorded electronically in the member’s account database. One Bartercard Trade Dollar is equal to one New Zealand Dollar for all accounting purposes, and is treated as such by the Inland Revenue Department.
Bartercard NZ, New Zealand’s largest and longest standing trade exchange, has over the last few months been signing new members at a rate of more than 100 per month as business owners are forced to think outside the square.
Explaining the heightened interest in barter in the current economic climate, Bartercard CEO Paul Bolte said, “With the current tightening of the cash economy, businesses are being forced to become more creative in the way they do business. For many of them, Bartercard represents an exciting opportunity as it gives them a new way of securing additional customers and gaining an advantage over their competitors.
Stress and cash flow problems go hand in hand and the need to relieve some of that stress can be achieved with smart bartering. Bartercard has combined the latest technology and a global network of members to transform the traditional form of simple bartering into a flexible and modern business tool to meet the demanding needs of today’s businesses.
Bartercard enables member businesses to exchange goods and services with other member businesses in the form of Bartercard Trade Dollars, saving valuable cash, and eliminating the need to engage in the direct two-way swap of goods and/or services.
As Bartercard enables you to pay business expenses with your goods and services, your additional cashflow is available for ‘catch up’ or paying suppliers who you cannot ‘trade’ with. This service particularly benefits New Zealand’s largest business sector, Small to Medium size businesses, who are currently facing fluctuating cashflow, slow sales growth and higher business financing costs.
Bartercard boomed during the depths of the recession, entering New Zealand in November 1992. Bartercard in New Zealand is still experiencing strong growth with Bartercard’s membership base containing over 6,500 businesses trading over $210 million Trade Dollars throughout the country in the past year.