An association of businesses formed for the purpose of trading with one another, using

mutual credit "Mutual credit" (sometimes called "multilateral barter" or "credit clearing") is a term mostly used in the field of complementary currencies to describe a common, usually small-scale, endogenous money system. The term implies that creditors and ...

to keep account. Typically the lead business will run the exchange, performing a

broker A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be confu ...

ing services and providing (or renting) an

online marketplace An online marketplace (or online e-commerce marketplace) is a type of e-commerce website where product or service information is provided by multiple third parties. Online marketplaces are the primary type of multichannel ecommerce and can be a way ...

for members to meet their

reciprocal Reciprocal may refer to: In mathematics * Multiplicative inverse, in mathematics, the number 1/''x'', which multiplied by ''x'' gives the product 1, also known as a ''reciprocal'' * Reciprocal polynomial, a polynomial obtained from another pol ...

needs and register their transactions. Also known as

business barter Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services). It is also "any activity or enterprise entered into for profit." Having a business name does not separat ...

Thousands of trade exchanges exist, some independent and some belonging to regional or global networks. The two most prominent associations for Trade Exchanges are IRTA (

International Reciprocal Trade Association International is an adjective (also used as a noun) meaning "between nations". International may also refer to: Music Albums * ''International'' (Kevin Michael album), 2011 * ''International'' (New Order album), 2002 * ''International'' (The T ...

) and NATE (National Association of Independent Trade Exchanges). There are numerous benefits to business bartering, some of which include, large referral network of businesses/services, easing cash flows problems/saving cash, filling empty time slots (professionals, stylists, etc.), filling empty hotel rooms, unloading excess inventory, using trade to attract cash customers (advertising), gaining access to a directory of other member businesses, from which they can purchase and sell dollar for dollar. Reputable trade exchanges have physical locations with sales people & brokers and are not just "online" exchanges. Trading in this way can ease cashflow problems and help turn inventories around.

References

{{reflist Finance

See also

References