It’s possible to receive goods and services, but not pay for them if you use barter. This is a special form of trade that is conducted without the use of money. You can compare it to demo games at https://22bet.com: everything is the same, but no money is involved. Let’s find out what the advantages of barter are and get useful information on how to properly execute such mutual settlements with counterparties.
Table of Contents
Barter is a way of trading without the use of money and cash, including bank cards. In simple words, the concept implies that one party provides goods to the other party in exchange for things or services, not money. The essence of barter lies in the following conditions:
Barter as a form of trade is the oldest process whose history began as a natural exchange before hard currency existed. Today, it’s also used quite often, especially by start-up entrepreneurs who, because of their financial situation, don’t yet have the money available to make payments to contractors. Exchanges between individuals are rarely referred to as “barter,” but are generally used when the parties are legal entities.
The algorithm for making an exchange is simple:
Thanks to barter, companies can maintain normal business processes, not to stop production and shipments, without taking money out of circulation.
According to one of the classifications, barter is divided into several types, depending on the number of participants:
Depending on the type of participants, the following variants of barter are distinguished:
There is also electronic barter, which takes place with the help of special services that allow interested parties to find each other.
To successfully conduct business using barter, it’s worth adhering to the following algorithm:
The following items must be present in the agreement by means of which the barter transaction is formalized:
In a contract of exchange, as in any other, it’s also necessary to include a paragraph on the procedure for settling disputes and other conditions. If you have no experience in drafting such documents, it’s better to consult a lawyer.
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