Bartering has been around since ancient times. Our ancestors were practicing it long before us – especially in times when money didn’t even exist. It’s a simple concept. Barter is the exchange of goods and services for other goods and services people offer. Today, the barter trading system has been refined to fit modern day business models and businesses’ needs. Though it still follows the same concept, barter has now opened more opportunities for businesses to capitalise on their unrealized potential. Still, some people misconstrue how the whole Bartercard system works. Is it a scheme? Is it a way to avoid taxes? These are valid questions and today, our blog will clear up some misconceptions surrounding incorrect Bartercard reviews, and hopefully give an insight into how Bartercard works. Let’s take a look!
Is Bartercard a pyramid scheme?
The simple answer is no. Bartercard does not follow a pyramid-based model. Bartercard is an innovative way of utilising modern technology to create a community of like-minded businesses. This is done to encourage trading, in order to increase sales. Bartercard seeks to open opportunities to its members by expanding their business network. Unlike pyramid schemes, Bartercard doesn’t have a hierarchal setup where existing members gain rewards from new members further down. Bartercard’s business model is carefully designed, and based on members making transactions, not just them becoming part of the network.
Is Bartercard used to evade paying taxes?
Not dispensing cash means you don’t have to pay taxes, right? Well, not exactly. In Bartercard, transactions are assessable and deductible for income tax purposes to the same extent as other cash or credit transactions. Therefore, the advantages and disadvantages are similar to normal cash revenue or expenses. In simpler terms, Bartercard is not a way for businesses to evade taxes. Entities are still liable for paying goods and services tax (GST), but it’s paid and received by members in the form of Trade Dollars.
Are goods more expensive when purchased on Bartercard?
Just like in any business transaction, Bartercard recommend that members get a quotation first from a variety of businesses before settling on a purchase. To manage rates and pricing, fair-trading is practiced in Bartercard. Bartercard encourages consistent pricing of goods as well as cash purchases. Even with the use of trade dollars, transactions should not more than expensive than cash transactions.
Make Bartercard work for your business
Bartercard is not a deals provider; we don’t do any magic tricks when it comes to growing your business! We simply want your business network to expand, and increase your buying and selling opportunities by introducing you to a new and safe marketplace to do business. We convert your excess stock, downtime, and spare capacity into extra sales. If you want to learn more, you can check out our Bartercard FAQ to discover how your business can benefit from Bartercard.