Barter as an Alternative to Cash

While bartering may be one of the oldest forms of commerce, in a sluggish economy it is a smart alternative to cash. Businesses barter excess inventory, time or capacity to obtain things they need. If you are strapped for cash consider what you have to trade with other businesses.

In photography bartering is fairly common. Photographers, models, hair and makeup artists are willing to trade time for images. The parties work together and everyone walks away with fresh images for their portfolios. On other occasions I've been able to work out a deal with banquet hall owners or clubs to use their location during slow periods(capacity) as a set for a photo shoot. In exchange I provide them images (inventory) they can use in their marketing material.

There are also barter exchanges where a merchant's goods/services are converted into "credits". You can then use your credits as a form of currency on the exchange. "Merchants Barter Exchange", based out of Monroe County PA, is one of many exchanges of this type.

If you trade directly with another partner remember the following:

1) Establish a value for your product or service.
You are using your goods as currency so it is extremely important to know their value.

2) Get it in writing.
Always keep accurate records. Be specific about what each side will give and receive.

3) It's taxable
A barter is still a business transaction and counts as taxable income.