Barter System And Avrasya Barter In The World
The Barter system is an important trade and finance system with a long history. It is a visible fact that everyone who is a member of the system has the maximum gain. So, what is this barter system? What about the world? What are the differences that Avrasya Barteroffers? We asked Murat Doğanay, the owner of Avrasya Barter, the system that provides its users with many advantages.
Can you tell us about the system? What is the use of this system in the world?
Barter is the name of the system in which the company is paid only with the goods or services purchased.
A company working with Barter system pays the price of goods and services purchased from the barter market by selling the goods and services that it produces or trades to the companies that are members of the system; in the same way, it collects the price of goods and services sold to the barter market by purchasing the goods and services offered in the barter market. Barter is both a trading and financing system in which a company can sell its own goods or services that it can meet its needs by using interest-free credit. The system is widely applied in the US and European countries. The barter is in the forefront in financing even the simplest purchases in these countries. The formation of the barter system in the world coincides with the 1930s. Hundreds of thousands of companies benefit from the barter system. The system has been implemented in our country since the second half of the 1990s. There are examples such as buying a daily newspaper in Frankfurt and taking a taxi in Vienna. Some barter organizations in Japan work as the finance department or sales department of the member firm.
How to join the system?
Companies that want to become a member of the Barter system, first, inform their request to the operation center of the barter firm. After the completion of all documents and membership price, the barter company approves the contract. Research is done about the company, a meeting is organized as a result of this research and the system is introduced. The membership registration of the company is then carried out. In this introductory meeting, the most effective way to benefit from the barter system is coordianted. A new “Company Barter Checkbook ”is arranged on behalf of the Company and delivered to the company representative.
The Barter Membership Agreement is delivered to the company for further examination of the company. Supply and demand lists are created and operations are started accordingly. The Company signs the Membership Agreement and submits it to the barter firm with the necessary documents. A publicity announcement for the new member is sent to all members.
What is the difference between purchasing goods and services for goods or services instead of goods for money in Barter system? What advantages does the system offer in this respect?
Barter System ensures reaching new markets and provides new customers.
Companies entering the barter market have the chance to enlarge their existing market shares with customers gained from the barter market.
Without any effort and cost to do marketing, it is encountered with the demand of the firms in the market; easy sales to customers that are not known at all.
Increases Sales and Profit
In the barter market, only the members can make transactions and only the companies that they need are placed on the market provides the opportunity to sell safely and continuously to the members. Member firms increase their turnover with the barter system. The companies do not incur additional costs for the sales made with the barter system since they have fixed operating expenses for their normal commercial activities.
Companies pay their debts to the barter system with their own products or services. They earn more than the profit margin of the products or services.
Provides Efficient Capacity and Inventory Evaluation
The companies working with the Barter system decide on which products to sell to the system, and they also have the flexibility to change the supply information. Members present their products and idle capacities in the system. In this way, they reduce the unit cost of fixed expenses and they are saved from stocking costs.
Provides Collection Guarantee
The company that sells to any member of Barter market is under the guarantee of Avrasya Barter. The company purchases the products offered by the other member companies for sale, even if the company stops its operations or goes bankrupt. A sales permit is granted in the system prior to each purchase. By controlling the balance of the buyer company, an authorization code is issued to the seller and the buyer is treated with a barter pool understanding, even if the buyer falls into a difficult situation, thus preventing damage to the creditor.
Provides Fast Collection
The member who sells with the barter starts to collect the receivable at any time by purchasing the products or services offered to the market without waiting for the company that purchases the product to collect the receivable.
Gives possibility to use Interest-free product and Service Credits
If they wish, they can use with a 12 months maturity term 0% interest rate product and service loan against valid guarntee. Thus, the company that meets the needs with the barter system borrows as much as the price of the product purchased by the barter system. The system gives the buyer 12 months to pay his debt. In the 12-month period, the debtor companies are informed of the demands for the goods and services they produce and if the sales are realized, the company pays the debt with the product.
If the debtor does not pay the product in any way during the 12 months period, the debtor pays in cash at the end of 12 months. Thus, the loan will be used with zero interest for 12 months. The company uses the barter system for its needs and saves cash as much as it uses, and reduces the working capital requirement.
Provides Free and Effective Ad / Promotion
Detailed information about the products of the member companies is recorded systematically in Avrasya Barter Information Bank. This information is made available to all member companies via internet media who cooperates with the barter program.
In addition, Specialist Trade Brokers promote and advertise these members in the companies they are discussing their sales alternatives, thereby reducing their marketing expenses and contributing to their brand formation.
Provides Safe, Easy Export
Companies in the barter market, along with other barter companies that have signed an agreement to implement the barter system in international markets, face the supply and demand of tens of thousands of members who are engaged in barter trade all over the world.
The seller company provides goods and services without demanding money and obtains an extremely important advantage among the companies selling the same goods or services.
How Barter history has developed in Turkey? What is the difference of Avrasya Barter?
Turkey has lately begun to use barter system in the early 90s, yet many aspects are not recognized, and therefore businesses and companies can not benefit from the advantages brought about by the system. Promotions related to Expansion and extensions of Barter system and implementation of legal regulations related to the functioning of the system of use in Turkey, will make an important contribution to the economy of Turkey especially with respect to SMEs,.
Avrasya Barter offers its members extraordinary solutions for increasing collection guaranteed sales, dissolving stocks, evaluating idle capacity, financing, and minimizing losses from crises via its own and organized barter system, which is an alternative financing model.
With more than quarter century of experience in Barter trade, the leading company in the sector with its distinguished executives and specialized staff, Avrasya Barter aims to add power to the Turkish economy. In addition to corporate memberships, Avrasya Barter also accepts individual memberships and grows with new members and products that added to its portfolio every day.
The big barter market managed by Avrasya Barter is a deep and wide market with over 3000 member companies coming from a extensive range of sectors ranging from textile to construction, from real estate to tourism and from media to automotive.