Understanding Corporate Barter
Businesses have always sought ways to reduce expenses. Seventy-five percent of small business feel unchanged over the past five years despite the recovering economy and increased revenues from other revenue streams.
Due to concerns about cash, payment terms, attracting better talent thus the need for new avenues to save money.
For small and young businesses, the less financial expenses you have, the better. That’s why corporate barter is a good option for them to access assets from other companies in return for trade of resources and services.
What is Corporate Barter?
The process of bartering goods and services between businesses is known as corporate barter.
There are a variety of goods and services that are considered assets, including underperforming services, unused inventory, and real estate owned by the business.
By exchanging assets, businesses can secure assets from another company while minimizing their financial expenses.
Does Your Business Need to Consider Corporate Barter?
A few considerations need to be made whether your business engages in corporate barter or not.
The first is whether your business has underperforming or unwanted internal assets.
In order for your company to come to this agreement, how healthy are your business relations with other companies?
Can these assets be leveraged to secure the goods and services they need from another company?
Why Corporate Barter?
Engaing in corporate barter is something that would be very helpful for companies trading assets, as it reduces the need for financial payments.
Though corporate barter deals allow businesses to use existing resources more efficiently, they also reduce the need for big investments or external investments in order to secure goods and services from other companies.
This ultimately increases a company’s flexibility and enables them to shift, adapt, and change business strategies quicker and easier than before.
Advantageously, corporate barter deals don’t have to be limited to assets for assets trade.
Barter transactions can also involve a combination of assets and cash or barter trade coins.
How Corporate Barter Works?
A common example of corporate bartering is when two companies exchange their unused or unwanted assets.
For example, Company A might trade their unused inventory for Company B’s surplus machinery in return for Company B’s used vehicles.
This could lead to a substantial savings of both time and money, while also generating a sound financial strategy for both companies.
Another way for businesses to regain value is by executing corporate bartering. This means exchanging goods and services between two companies instead of exchanging money.
In an ideal case of a corporate barters, one company could have unused goods or subpar services to offer in exchange for something of better value from another company.
This helps both companies avoid excessive financial losses since the asset might be worth less or entirely worthless to one company but can be valued by another.
As a result, corporate bartering helps to minimize inefficiencies and waste of resources.
In our article, “Bartering: The 6 Outstanding Benefits & 5 Reasons of Concern”, we explain how bartering works, its advantageous and potential pitfalls.
Corporate Barter Platforms
A platform like Obodo, an UAE-based barter, buy-and-sell market, or baggl, based in the UK, can be useful if you’re looking to exchange goods and services. It was recently nominated (by Entrepreneur Middle East) for Most Innovative Tech Innovation.
These platforms work by showcasing your company’s underused or unused assets to other companies- potential customers!
Businesses can not only find the supplies they need, but they can also trade their surplus of inventory with one another.
Corporate bartering platforms such as Obodo make it easy to connect wholesalers and retailers, saving time on price negotiations or trying to find a qualified party to exchange with.
Just add information about your business’ products and services and our A.I powered technology will help match you with other businesses or individuals who are looking for something similar.
A corporate barter company may acquire unwanted assets from businesses in exchange for corporate trade credit.
This credit can be used by the business to obtain other goods and services that the company offers.
Several types of media exposure are offered by corporate barter companies in exchange for corporate trade credits that businesses obtain.
Businesses, especially small ones, can increase their media exposure and reach by using their low-value and unwanted assets through corporate bartering.
In this way, an asset that seemed worthless or lost can still add significant value.
5 Benefits of Corporate Bartering
- By using corporate barter, you can reduce your business’s financial expenses
- Your business can remain flexible by not making big financial investments through corporate barter
- By using corporate barter, your business can make use of assets that are unused or unwanted
- Bartering helps your business make use of underperforming services
- You can minimise inefficiencies and waste of assets by using corporate barter
The less financial expenses you have, the better. That’s why corporate barter is a good option for small and young businesses to access assets from other companies.corporate bartering.
Thus, a seemingly worthless or lost asset can still add significant value.