How to improve cash flow and get rid of excess inventory
FYI, this story is more than a year old
Small-to-medium businesses in New Zealand often have trouble getting paid on time.
The average time of it takes for a business to receive payment after invoicing is more than 30 days.
For a mom and pop business, the extra days can often mean the difference between being able to keep the business running versus being able to make critical investments to further the business.What alternatives are there for businesses?
Instead of waiting to be paid, small business could trade with one another on the barter system instead.
Bartercard is a trade exchange system that allows its members to do so, helping them gain more customers and get rid of excess inventory in a reliable way.
To date, Bartercard has members consisting of over 6,000 businesses in eight countries, with a trade volume of over $150 million a year.Network effect
A network effect is a positive effect that an additional user of a good or service has on the value of that product to others.
When more people are on the network, the value of being on the network is increased, therefore more people are incentivised to join.
This perpetuates itself in a positive feedback loop, driving the network forward.
By the same token, businesses are joining the Bartercard platform to offset their cash expenses in equal value exchanges of goods and services.
Bartercard’s Search function makes it easy for members to locate one another and quickly identify places they can spend their Bartercard Trade Dollars.Bartercard Search
The Search feature functions very similarly to Google Maps, allowing members to find, rate, and provide feedback to one another.
This mechanism also gives other members confidence to engage with the businesses of other members on the network.
The Search feature also has a Tourist Guide mode, giving members up-to-date tourist information wherever they are in the country.
Available both via the Bartercard app and on desktop, this is a great way for members to create their own shortlist of businesses and places to visit, share and recommend them to others.
The feature also allows users to save their searches and create their own favourites list so they can refer back to them regularly.
The Bartercard team is constantly developing this functionality in order to improve the network effect and make it easier for members to use.