- Bartering benefits businesses that see a mutual benefit in exchanging goods and services, rather than cash
- It enables those who are lacking hard currency to obtain goods and services
- in the case of a simple barter transaction, there will be no cost
- Suitable for short-term borrowing needs
- Generally easy and quick to arrange, with immediate access to funds once facility has been agreed
- A credit facility can be arranged as part of membership of an online barter exchange
- The facility amount can be tailored to suit business needs including both cash-flow and back up against unexpected expenditures
- Funding is received without the need to give up a share of the business in return
- Transaction and membership fees are normally tax deductible
- Due to its short-term nature the balance of any credit facility overdraft is not normally included in the calculation of the business’s financial gearing
- Transaction charges are predictable.
