As a member of GROW Louisville, in addition to networking and referral opportunities, you’re part of a trade exchange. You can buy from and sell to any other member using GROW dollars.
Here’s how it works. When another member buys your goods or services, your account is credited for the amount of the transaction in GROW dollars. You can then spend those trade dollars with any member of GROW. This eliminates the problem of direct trading, where both parties must want each others’ services simultaneously.
The biggest is new business. Trade provides you with new clients, so you can expand your potential market beyond your traditional, cash-paying customers. It also increases cash flow, since you can trade goods and services for what you need instead of spending cash. In addition, it allows you to put idle resources to work. Excess time, inventory and capacity can be converted into additional revenue — extra profit you may never have realized otherwise.
Trading one-on-one with other businesses is very time-consuming — and each party must have something the other needs or wants. GROW Louisville makes trading much more efficient. Whenever anyone purchases something from your business through GROW, your account is credited with GROW Dollars, which can then be spent on any item or service from any other member.
If you can’t find what you’d like to barter for from a member, just contact GROW. We’ll either help you find a member who offers what you’re looking for, or we’ll actively recruit new members who do.
GROW will often extend an interest-free credit line to its members, on a case-by-case basis.
There are no tax advantages or disadvantages to barter. Barter income is the same as cash income for tax purposes. Bartering should be considered a marketing tool, not a tax tool. Barter purchases that are business-related are also tax deductible.
GROW makes it simple. At the end of the year, we add up all your barter transactions and submit the total to the IRS using form 1099B. Taxes apply just as if the barter sales and purchases were made in cash.
Every member is expected to trade their goods and services at their normal cash rates. If you offer special promotions or discounts to their cash customers, you are not obligated to make those same offers available to trade customers.