Barter Operations

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Barter Agreement between members

Operaciones Bilaterales

RECIPROCAL TRANSACTIONS, (BARTER TRADE)

A system of direct exchange of one commodity or service for another without the use of money is called barter. COUNTERTRADE

As Gabriel Landriault put it in a 1999 article in Computer Dealer News, “Internet-based barter exchanges are growing in popularity and could represent the last true e-commerce revolution.”

Two EXAMPLES

1.- one container of fish from Ghana in Exchange of one container of meat from Poland (similar Price)

The fish go to Poland, the meat go to Ghana

2.- 100 bicycles  per week with Price 16.000 $ from China (48.000 $ per month) in Exchange of rolled Steel from Colombia with Price 48.000 $ per month.

The bicycles go to Colombia, the rolled steel go to China,

If the Price of the Steel would be 60.000 $ the Chinese company should pay to the Colombian business the difference of 12.000 $

In all cases, companies must pay the taxes, obviously

While barter transactions don't involve cash, they do have tax implications.

EXTENSION OF BARTER

1.- Barter exists also between governments

Governments that agree to import from another country if they at the same tiem export to that country.

Venezuela's oil for food barter deals increase by 64%.

2.- Or in the same city, Local barter, Services barter, Also services can be exchanges. (Each zone's admistrador will be responsible for promoting local barter) 

3.- Also can exist trilateral operations, Barter usually is a person-to-person transaction, but some times, can be brokered by a third party due to our network of participants. In this case, if you'd need financial support, let us know.

TRENDS AND DIRECTIONS

 1.- Bartering is the exchange of goods and services among businesses. The practice is as old as time, but since about the late 1970s it has taken on a new life of its own and has grown into a major national and international activity, more recently mediated by means of the Internet.  

2,. Web-based barter trading appears to be the next major development in the barter industry. 

Back to the barter? The future for SME finance is being ONLINE

We have a manager in each Area or the World to advice you about the rules of the countries where you would want operate.