What is a corporate barter?

Flexibility is key for businesses, no matter what sector they’re in. The ability to shift and adapt strategies to meet a changing market is vital for the continuing success of any commercial entity, and nowhere is this adaptability more important than when it comes to company finances. Corporate barter is a means for businesses to exploit their existing assets in a way that maximises their benefits while minimising the need for additional capital investment – with cashflow being the prime concern of many businesses, this ability to operate free from the cash economy is hugely beneficial.

How does corporate barter work?

There are many different ways for a barter trade to be constructed, and different businesses will choose different trade deals for different needs. The basic premise of a corporate barter is that a business will use an unwanted or underperforming asset to secure goods or services that they do need. Corporate barter is often arranged through dedicated barter companies or online platforms which specialise in purchasing and remarketing assets from other businesses.

Many barter companies offer widely used services as an exchange medium for client assets – in some cases, they will secure advertising space and services which will be offered to their clients in return for their assets. Businesses who wish to liquidate an asset will approach these barter companies and negotiate a deal; they will offer to “sell” the asset in exchange for “buying” advertising services from the barter company. The barter company will then liquidate their client’s assets through their own channels.

An example of corporate barter

For instance, let’s say a business wants to make use of some old stock that isn’t selling. If they sell it on the open market they might only receive a sliver of the product’s real value. Instead, they turn to a corporate barter specialist that offers them media space of a much higher value, sometimes 2-3 times the asset’s open market value. The client thus receives valuable advertising services in return for their unwanted assets, and may well see an increase in their own front-end sales. The corporate barter business will negotiate with third parties to sell their client’s unwanted assets, and will be able to profit from its sale price.

While media and advertising is fairly common in corporate barter, this is certainly not the only exchange available; it’s simply a universally useful and beneficial method of compensating clients for their assets, and is widely used. Businesses would do well to consider turning to corporate barter specialists – these services can be extremely useful for making a profit out of unwanted assets.