5 December 2023

Swapping Goods and Services to Help Struggling Businesses Navigate the Pandemic

By Ronald Smith

In these challenging times, businesses are finding creative ways to stay afloat during the pandemic. One such way is through the age-old practice of bartering – trading goods and services instead of using money.

Let me tell you, bartering is a game-changer for cash-strapped businesses. Instead of relying solely on dwindling funds, they can make deals with other businesses to exchange their products or services for something they need.

Picture this: I have a surplus of face masks but need computer repair services. Lucky for me, there’s a computer repair shop in town that needs face masks. We strike a deal – I give them face masks, and they fix my computer. It’s a win-win situation!

Bartering not only helps businesses meet their needs but also fosters relationships and strengthens the community. By working together, businesses can support one another and keep the local economy buzzing.

Now, you may be wondering, But how do businesses find each other for bartering? Good question! Nowadays, there are online platforms and local networks specifically designed for this purpose. These platforms act as a matchmaker, connecting businesses with complementary needs and facilitating the bartering process.

Imagine logging into one of these platforms, browsing through a variety of listings, and discovering businesses that have what you need. It’s like a virtual marketplace where you can strike deals with fellow entrepreneurs, all from the comfort of your office or home.

Bartering is not only practical but also a fun way to get creative and think outside the box. It encourages businesses to explore alternative solutions and find value in assets they may have overlooked.

So how about it, will you join in the bartering trend? It’s a fantastic opportunity to support fellow businesses, overcome financial hurdles, and keep the entrepreneurial spirit alive during these challenging times. Let’s trade our way to resilience!

Swapping Goods and Services to Help Struggling Businesses Navigate the Pandemic

When the economy goes through tough times, like high unemployment and a lack of cash, bartering becomes a popular solution. That’s exactly what BizX has noticed as businesses struggle during the pandemic.

BizX says its platform is becoming an important tool for businesses to preserve their cash reserves. Cash flow is always a challenge, but it’s especially difficult during this crisis.

What is BizX Bartering?

BizX is a digital bartering exchange that was created after 9/11 to help businesses build relationships and connect with each other. The main goal is to provide a platform where businesses can support one another, particularly during times of crisis. BizX is a community of over 7,000 businesses who trade their goods and services in order to free up their cash flow.

Increasing Awareness of Bartering

In this announcement, BizX states that the media outlets across the country are highlighting bartering, specifically its platform. Bloomberg, Inc., and Fox are among the companies that are spreading awareness about the benefits of bartering.

Even though cash has led to a decline in bartering, businesses of all sizes still widely use it. According to BizX, around 65% of Fortune 500 companies incorporate barter or non-cash transactions into their daily operations. And on a global scale, 30% of the economy relies on non-cash transactions.

Bartering has been a practice since 6000 BC, used by Mesopotamian tribes. As long as there are people who want to trade, some form of barter will always exist. Especially during an economic downturn, bartering might be the only way for many people to stay afloat until things get better.

How BizX Works

Let me explain how BizX works. It’s all about buying and selling between members. When you make a purchase or sell something, your BizX account is either credited or debited accordingly. But here’s the interesting part – we use BizX dollars as the currency for these transactions. And guess what? The value of a BizX dollar is exactly the same as the good old U.S. dollar. We use BizX dollars to keep track of the value of every transaction that takes place.

Now, let’s talk about how you can earn BizX dollars. When you sell your product or services to another member, you accumulate BizX dollars. It’s like getting rewarded for doing business with our community! And when you’re ready to make a purchase, you can use your BizX dollars, just like you would use cash. It’s as simple as that.

But here’s the best part – BizX gives you multiple ways to buy and sell. You can use our marketplace to connect with other members and make deals. You can even make transactions in person at physical locations or through our mobile app. And if you prefer online shopping, we’ve got you covered with our web-based Point of Sale terminal. It’s super convenient, no matter how you like to do business.

When I make transactions on my account, the company records them as either credits (sales) or debits (purchases). According to the rules of BizX and the IRS, this is how it’s done. Just like cash, the IRS treats profits and losses as taxable.

The Tax Equity Fiscal Responsibility Act (TERFA) states that any income earned through bartering in a taxable year is considered as income. BizX reports all the transaction details to the IRS annually and gives its members 1099-B forms, so they can report their own earnings. It’s simple: revenue is revenue and expenses are expenses.

BizX has a diverse membership, representing over 120 different industries. From big companies like Fortune 500 to sports teams, local leaders, small businesses, and startups, they’re all part of the platform.

The Power of BizX Platform

Whether we’re in the midst of a pandemic or not, this platform offers a fantastic opportunity for businesses like yours to attract more customers and boost your cashflow.

By becoming a member, you can effortlessly sell your products and services to other members, all without the need for cash. This incredible feature not only expands your customer base, but it also eliminates the hassle of handling cash during transactions.