Australian small to medium enterprises (SMEs) tackling the aftermath of the global economic slowdown are acting quickly to seize modern-day, interest free lines of credit through Bartercard.
Bartercard Managing Director Brian Hall says while Bartercard is useful for operating a business in any economy, its full potential as a true business asset is realised during tough times.
“Over 20,000 SMEs in Australia are using the modern day Barter exchange system to increase cash flow and profitability and weather the economic storm of the past two years,” Mr Hall says.
“There is currently over $163.5 million available in credit for Bartercard members to use on anything from website design, legal services, stationary, office rental, advertising and much more.”
“A typical line of credit for, for instance, opening a new office is $20,000 Trade Dollars; no AUD changes hands.” said Mr Hall.
From the $163.5 million available to members, over 9,000 Bartercard businesses are using in excess of $43 million of these interest free funds.
“Using Bartercard for typical office expenses means that businesses have a direct benefit to offset cash expenses and in turn receive boosts to cash flow,” Mr Hall adds.
“Bartercard members are freeing up their cash flow to bring outstanding tax bills into line or to assist in purchases, not possible due to current lending restrictions.”
Since its inception in 1991, Bartercard has offered its business customers, predominantly micro-enterprises and SMEs interest free lines of credit in their registered currency Trade Dollars.
“Over the next 12 months, Bartercard’s conservative new business membership forecast is around 2,500 new businesses, which will increase our interest free credit offering by a further 18-20 million Trade Dollars,” Mr Hall says.
“Our alternate currency gives customers an additional new source of business opportunities with an in-built purchasing discount. When the banks say “No”, we can say “Yes”.”
Satisfied member and local rally car business owner Mark Haybittle of Extreme Driving says in the 10 years since joining Bartercard he has consistently been able to offset his cash expenses using barter dollars as well as ramp up his cash sales.
“The Bartercard system is a great accessory to any business. Once you know how it works – it’s dead easy. The benefit is that the system can be used as an additional asset to sales and help you buy the things you need in the cash world, without the traditional fluctuations of a loan,” Mr Haybittle says.
“My last transaction was with one of the big four accounting firms which was liquidating a company with $100,000 in Trade Dollars. Bartercard negotiated $70,000 Trade Dollars to be spent with us on gift vouchers for our very exciting rally drive days.
“What was even better, the accounting firm was then able to convert my vouchers into cash by selling them on a well known online retail auction website and they ended up getting 80% back in cash,” he says.
“With minimal work involved, this last transaction was an excellent result. I couldn’t have made this kind of sale without having such a financially viable system in place.”
Bartercard invites all Australian business to realise the full potential afforded through their barter trade network. Visit www.bartercard.com.au or phone 1300 BARTER (1300 227 837).
