The barter economy is difficult to measure given the relative ambiguous nature of the deals it contains. However, it has definitely come back into fashion as the internet has reduced the barriers to trade. Many businesses are now seeking out ways to conduct new contra deals with each other. Here are 3 industries that are effectively using contra deals in their business activities.
Developers in the construction industries
The current lack of liquidity in the construction industry is leading to more non-monetary transactions taking place. Developers are offering unfinished apartments in place of regular cash payments to construction firms.
The skipping of cash payments means the process is often sped up which saves both the parties’ money in the long run. Many feel that as high amounts of capital are rare in today’s market contra deals like this are likely to continue in the future.
The increase in construction-related bartering is due in part to the decrease in regulation around non-monetary transactions. This is good news for developers and smaller construction firms who are also struggling to find contracts in this difficult market.
Industries that use trade banks
A trade bank is an organisation that focuses on connecting different businesses and helping them trade goods and services with each other. This is connecting law firms, plumbing and construction companies and even businesses in the catering industry to each other allowing for the sharing of services without cash deals going through.
In many cases, businesses have created and occupied space in the market to act as between companies wanting to trade. This takes away some of the difficulties and barriers to trade in terms of legal complications and other financial costs.
Is my Industry a good match for contra deals?
The increasing use of contra dealing on the web means more and more industries are taking up bartering as a means of gaining services and selling theirs. All kinds of retailers and service providers take part.
If you have any questions on possible routes to go down with contra dealing you can get in touch with us via our contact form.