FAQs
How will my business profit from barter?
How does Barter work with a trade exchange?
What companies are involved in barter?
Are there any tax advantages to bartering?
How to treat barter transactions in accounting record?
What if I get too little / too much business?
What if I don't know what to buy?
What if I need to make a purchase before I've earned trade dollars in the system?
How should I price my products and services?
Can I barter outside Singapore?
How to Join Barter Vista Barter?
A simple explanation of barter refers to the exchange of goods and services without the use of cash. Bartering is also commonly known as counter-trade at a corporate level, and in higher end international trades.
How will my business profit from barter?
Barter produces new business - allowing you to expand your market and maintain your cash-paying customers. Barter conserves cash. For example, if you owned a restaurant that had is vacant during lunch and you need some advertising or marketing costing $3,000. Barter provides a way in which you can buy the advertising and marketing services, and fill your restaurant via selling of restaurant vouchers and maintain your cash. The same is true for filling empty rooms in a hotel, moving inventory for retailers and manufacturers or increasing billable hours for service business. Barter provides a competitive edge. Barter clients are new clients that bypass competing businesses to do business at your establishment while you are maintaining your existing cash clients.
How does Barter work with a trade exchange?
A trade exchange eliminates the restrictions of one-on-one trading where each business must want what the other has to offer. Barter Vista Barter works with you to bring your company new sales, increased market share and to minimize cash outlay for everyday business expenses. Clients of an exchange use trade dollars, instead of cash, to handle their transactions. An exchange acts as a third party record keeper, providing monthly statements to clients, which reflects all trade purchases, sales, and a current trade dollar balance.
What companies are involved in barter?
All sorts of Small and Medium Sized Enterprises (SMEs) are in Barter Vista which currently has over 350 members in Singapore. Barter Vista is growing daily, increasing the number of members that you can trade with. In Singapore, we have a diverse group of members that form part of our trade exchange.
Are there any tax advantages to bartering?
Barter income is treated the same as cash income. There are no tax advantages or disadvantages to bartering your goods and services. Barter is used as a financial tool, not a tax tool. Barter Vista Barter provides your company with a statement of accounts which you can view and download on your own from our website. It records all of the sales and purchases you had transacted each month. Cash purchases that are normally tax deductible as business expenses are also tax deductible when purchased on barter.
How to treat barter transactions in accounting record?
In accordance with General Accepted Accounting Principles, members must record all transactions at fair market value. The member creates an additional bank account in their General Ledger to record all trade dollar transactions. Similar to a cash sale, when a sale occurs, the revenue account is credited and the trade bank account debited. When purchases occur, the asset, or expense, account is debited and the trade bank account is credited. The trade bank account will equal the balance if your Barter Vista statement at the end of the month.
What if I get too little / too much business?
If you don’t receive additional customers as quickly as you would like to, Barter Vista will give your business free promotion through email or special mention on event(s) to all Barter Vista members in support of your sales. If you receive too much additional business and can’t keep up, Barter Vista will work to find additional businesses with the same product or service, so that the demand is spread out. Barter Vista works to make sure that its members are satisfied with the level of business they receive through barter.
What if I don't know what to buy?
Every member business is assigned an account service manager from Barter Vista Barter. They can do a complete spending analysis with you on your current purchasing as well as projections for your business in the future. You can spend your trade in many of the same ways you spend your cash.
What if I need to make a purchase before I've earned Vista Trade Credits in the system?
Barter Vista will extend a pre-approved and interest free barter overdraft facility of up to VTC2,000 to all new members so that you can start purchasing immediately. For greater amount, please contact your account manager for assistance.
How should I price my products and services?
Prices quoted to barter clients are the same prices quoted to cash paying customers. At Barter Vista we use a recommended retail price as a guide. Business owners are educated shoppers. Barter is simply a mode of payment - just like a credit card or cash. If the items are over priced, you will find that customers will not make that purchase.
Can I barter outside Singapore?
Yes, you can trade easily and seamlessly with any member in Barter Vista Exchanges in the region. Barter Vista Barter has a built in currency converter that is based on current cash currency exchange rates.
To join Barter Vista, a standard one-time application fee of S$800 (Cash) will be charged. No monthly subscription fee, account maintenance fee, or membership renewal fee to worry about. Once you are an Barter Vista member, Barter Vista acts like a commissioned sales force for your company, bringing you new business through the exchange and earning a small cash commission. In the same way that a credit card company would bill you for the transactions incurred. Barter Vista bills its members, and this is done at a very competitive rate, at 5% of the value of each transaction.
What do the fees cover?- Account setup and maintenance
- Member’s directory
- Record-keeping services
- Telephone access to your Account Service Manager
- Free online marketing and advertising to other Barter Vista members
- Free Trading Session and other sessions
- Invitation to networking sessions, like barter trading night, Barter Vista bazaars
How to Join Barter Vista Barter?
In order to join Barter Vista, you must own a business (i.e. a registered business or company with ACRA). Most businesses qualify to join Barter Vista and all are welcome. To register, please visit our website at www.bartervista.com.sg and register online or call our Vista team at 6255 5468.
