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What are trade dollars and how can they help SMBs grow?

15 Oct 18
Sponsored

As a small business owner, it's hard to find ways to do things better and more efficiently.

How do you find the balance between running the business day-to-day, and finding ways to grow your business?

SMBs would rather spend time on the business than on tedious admin work, so you need solutions that are convenient, simple to understand and use, and are supplied by professionals you can trust.

Bartercard is both a payment alternative and sales network, so being a Bartercard member can help businesses improve cash flow and grow the business.

1. Interest-free line of credit frees up cash flow

Bartercard is a currency that works like a credit card or another bank account, but instead of cash, it is an electronic currency which can be transacted via EFTPOS, online, the Bartercard app, over the phone, or by transaction vouchers similar to those used with a credit card.

With Bartercard, businesses can conserve cash while always having access to goods and services available through the Bartercard network. 

In this way, Bartercard offers an interest-free line of credit so you can continue using to make purchases when cash flow is tight.

2. Get rid of excess stock and increase occupancy - without discounting

Bartercard helps you put inventory, equipment and employees to good use, converting downtime and spare capacity (such as businesses who experience seasonal markets) into new revenue which would not have been available otherwise.

It also provides a system to put that excess capacity to use in profitable ways.

Bartercard lets businesses sell excess or unwanted stock without the need to discount heavily, which can result in reducing the perceived value or risking a potential price war with competitors.

3. Reach a new customer base

Bartercard’s large referral network means you can promote your products and services to new potential customers - other members of the Bartercard network.

The new customers generated by Bartercard are on top of your existing cash business, and therefore you don't need to worry about this business interfering with your existing business model.

And as you know, the key to sales success is referrals and word-of-mouth.

Bartercard members are more likely to spend with other members, providing an increased advantage over competitors.

Bartercard can increase business through the door by 5-15% and increase net cash profit.

4. Build staff loyalty 

For small businesses especially, retention of good staff is vital for the performance and profitability of your business.

Finding ways to reward staff that go the extra mile for the business without increasing wages or salaries can be tricky - and anything that goes through payroll will incur PAYE tax.

Bartercard Trade Dollars can be used for employee bonuses, incentive schemes or gifts - rewarding those who contribute to the growth of your business.

If Trade Dollar donations are kept under $300/person a quarter, there are no tax implications they are recognised under fringe benefit rules.