Contra dealing

Five Reasons Why Business Owners Should be Contra-Dealing

The modern business world is increasingly competitive, and it’s vital that business owners always have an eye out for getting an edge on their rivals. It’s not easy to balance the books when you’re running a small business, and you need all the help you can get; that’s why we think contra dealing should always be a part of a smart entrepreneur’s game plan. Although it isn’t the answer to every problem, there are always ways in which contra dealing can help boost the profitability and flexibility of a company. Here are our top 5 reasons why every business owner should look into contra dealing:

It frees up your capital. Although there are remarkable stories of people turning paperclips into houses through contra dealing, most businesses will need to pay for the goods they need. However, an expanding business is usually pumping as much money as possible into investment and has little cash flow left over. Maximising the money you can use to improve your business is vital, so if you can substitute a cash payment for a simple contra deal, there’s more space in your bottom line for building a better business.

It’s easier than ever. With online trading platforms available to everyone, it’s never been easier to find the perfect contra deal. The more potential matches you find, the more likely it is that you’ll make the perfect swap.

It’s easy to account for. The web is full of people asking how to account for contra deals, but the reality is that it’s just as straightforward as making a sale. Simply account for the contra deal as if you had sold your goods for their cash value.

It can be lucrative. The value of everything is completely dependent upon circumstances; a bottle of water might not be worth much to you, but to a man in the middle of a desert it’s worth so much more. The same rule applies to contra deals – you can swap something that has no value to you for something that’s vital to your business, which might otherwise be unobtainable.

It can convert waste into valuable goods. It’s common knowledge that many businesses end up paying to have potentially valuable goods removed from their premises. What if instead of paying for removals, they were able to simply swap them for something with more value? Contra dealing enables businesses to turn worthless excess stock or old equipment into valuable assets and merchandise.